Spectrum Now Public Property, Outside Insolvency
The Supreme Court has firmly declared telecom spectrum as public property, explicitly excluding it from the Insolvency and Bankruptcy Code (IBC) asset pool. This ruling marks a significant shift in India’s financial and legal landscape. It moves beyond the immediate impact on telecom companies, re-establishing a clear legal hierarchy. Spectrum, along with other licenses and concessions granted by the state, is now defined as a sovereign resource held for public benefit, not just a corporate asset for liquidation. This means the Department of Telecommunications’ claims for spectrum dues will not follow the standard IBC process for resolving company debts. This creates substantial…