Reliance Communications has approached the Supreme Court seeking a review of its earlier judgement on spectrum ownership under the insolvency framework, as per news reports.
The move comes after the court ruled that telecom spectrum cannot be treated as an asset for resolution under the Insolvency and Bankruptcy Code (IBC).
In its February 13 decision, the Supreme Court held that spectrum is a public resource and cannot be bought or transferred through insolvency proceedings.
The ruling stated that spectrum, even if recorded as an asset in company accounts, does not fall within the scope of IBC for restructuring ownership.
The judgement supported the government’s position that spectrum belongs to the public and must remain under state control.
It also dismissed appeals filed by the State Bank of India-led committee of creditors, UV Asset Reconstruction Company, and resolution professionals managing RCom, Aircel and Reliance Telecom, who had argued that spectrum should be considered an intangible asset.
In its review petition, Reliance Communications has argued that the judgement contains gaps and does not adequately address several key issues raised earlier. The company stated that excluding spectrum from the insolvency framework could make the IBC ineffective for telecom companies and other sectors dependent on government-allocated resources such as mining, hydropower and infrastructure.
The petition also highlighted potential consequences for the financial system, noting that lenders may reassess risk for projects involving natural resources. According to the company, this could impact credit flows and disrupt financing structures linked to such sectors.
Additionally, the company pointed out that the ruling overlooks protections available under Section 14 of the IBC, arguing that removing spectrum from the framework weakens the intended safeguards provided under the law.
Through the review petition, the company has sought clarity on how insolvency proceedings should be conducted in light of the ruling.
It has emphasised that ambiguity remains regarding the treatment of assets linked to government-granted rights, which could affect resolution processes across multiple industries.
Read More: ED Attaches ₹581 Crore Properties Linked to Anil Ambani Group; Total Seizures Reach ₹16,310 Crore!
As of 17 March 2026, at 12:25 PM, Reliance Communications share price is trading at ₹0.92 per share, reflecting a decline of 4.17% from the previous closing price. Over the past month, the stock has declined by 10.68%.
Reliance Communications’ review plea highlights broader concerns around the treatment of spectrum and similar resources under insolvency laws. The outcome of the review could have implications not only for the telecom sector but also for how credit markets and restructuring frameworks operate in sectors reliant on government-allocated assets.
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Published on: Mar 17, 2026, 1:28 PM IST
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