As per news reports, State Bank of India (SBI), representing lenders to the bankrupt Aircel Group, has approached the Supreme Court of India seeking a review of its February 13 judgment that disallowed telecom spectrum from being treated as an asset in insolvency proceedings.
The move comes amid concerns that the ruling could have far-reaching consequences for lenders, infrastructure financing, and the interpretation of insolvency laws in India.
In its review petition filed on March 30, SBI argued that the judgment contains “errors apparent on the face of the record” and does not adequately address key legal questions. These include the treatment of spectrum usage rights and the classification of government dues under the Insolvency and Bankruptcy Code (IBC).
According to lenders, the inability to treat spectrum as an asset significantly weakens recovery prospects in telecom insolvency cases, potentially altering the risk perception of financing such sectors.
The ruling has directly affected ongoing insolvency proceedings of Aircel and Reliance Communications (RCom). Aircel entered the corporate insolvency resolution process (CIRP) in 2018, followed by RCom in 2019.
Both cases have faced prolonged delays due to legal and operational complexities. The recent Supreme Court order has further complicated resolution efforts, prompting RCom’s resolution professional to also file a review petition.
The apex court had earlier ruled in favour of the government, stating that spectrum is a national resource and cannot be transferred or treated as a tradable asset under insolvency frameworks.
SBI has cautioned that the ruling could have systemic implications, particularly for banks exposed to capital-intensive sectors such as telecom and infrastructure. If key operating assets like spectrum are excluded from insolvency proceedings, lenders may face reduced recovery values and increased credit risk.
This could, in turn, affect future lending decisions and capital allocation to sectors reliant on government-allocated resources.
Read more: Tata Investment Corporation FY26 Results: PAT at ₹350.16 Crore, Revenue Sees Steady Growth.
The outcome of SBI’s review petition will be closely watched by the banking and telecom sectors. A reconsideration of the ruling could reshape how critical assets are treated under insolvency law, influencing both lender confidence and the broader framework of infrastructure financing in India.
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Published on: Apr 22, 2026, 2:15 PM IST
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