Which of the following statements is/are correct regarding the legal status of telecom spectrum under insolvency laws?
1. Telecom spectrum is classified as a public trust asset and is immune from Insolvency and Bankruptcy Code (IBC) proceedings.
2. Resolution professionals can auction a defaulting company's spectrum usage rights to recover corporate debts.

Question

Accepted Answer

A. 1 only — Statement 1 is correct as the Supreme Court ruled that telecom spectrum is a public trust asset and cannot be subjected to IBC proceedings. Statement 2 is incorrect because the ruling prevents resolution professionals from selling or transferring spectrum to recover corporate debts.

Telecom Spectrum Immunized from IBC Restructuring

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