The telecom department challenged any sale before its dues are cleared, a view opposed by the corporate affairs ministry
Lenders contested the telecom ministry’s petition in court, saying without sale of airwaves rights the bankruptcy resolution would fail.
Bickering among Indian government ministries and a deferred top court decision on the sale of bankrupt telecom companies’ rights to use mobile phone spectrum has derailed the resolution of the industry’s biggest bankruptcies, leaving banks waiting for $5.7 billion in payments.
India’s top court in a verdict on telecom dues earlier this month asked a lower court to first rule on the dispute raised by the federal telecommunications ministry against a group of government-owned banks led by State Bank of India over the legality of the sale of airwave licenses of collapsed mobile phone operators.
The case is yet another example of how government branches are delaying bankruptcy settlements in a country whose banks suffer the world’s worst bad debt ratios. Any uncertainty about lenders’ rights over the key assets of operators could also discourage lending or bank guarantees to what do computer engineers do. and Vodafone Idea Ltd.
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