Supreme Court wants all information on RCom, Sistema, Aircel & Videocon bankruptcy cases

Mumbai: The Supreme Court has asked for all records pertaining to the bankruptcy proceedings of Reliance Communications, Sistema Shyam Teleservices, Aircel and Videocon Telecommunications so that it can ascertain whether the Insolvency and Bankruptcy Code was misused to avoid payment of statutory dues.“We need to ensure that the IBC is not being misused by companies to escape liabilities,” a three-judge bench headed by Justice Arun Mishra said on Monday. The bench said it needs to examine the bona fides of Reliance Communications, Aircel, Sistema and Videocon Telecommunications, which have gone into insolvency.“Let all the documents be put on record within seven days from today,” the bench said, adding that it will next hear the matter on August 10.The order came after solicitor general Tushar Mehta claimed that the telcos in insolvency proceedings owed almost Rs 40,000 crore in adjusted gross revenue (AGR) to the government. Sistema Shyam had merged into RCom in late 2017.Some lawyers said the court’s direction would be worrisome for Aircel and RCom, which are in advanced stages of their resolution process and may be contested by stakeholders. But there was confusion over the SC’s move.

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