DoT faces uphill task of recovering telcos’ dues
Under IBC, financial creditors have greater right on the recovery proceeds but DoT can't be classified as a creditor
While bankrupt telco Reliance Communications owes the DoT ₹25,199 crore, Aircel owes ₹12,389 crore
The Supreme Court this week had expressed concerns over the recovery of dues to the government by bankrupt telcos, and asked the Centre to formulate plans to recover them. However, the classification of the government as an operational creditor in bankruptcy proceedings could make the recovery of these dues, including adjusted gross revenue (AGR), difficult.