The Department of Telecom, in its petition, has requested the appellate tribunal to set aside the order of the Mumbai Bench of the National Company Law Tribunal (NCLT) which approved the proposal to acquire 13 Videocon group companies. These companies also include Videocon Telecommunications, which is associated with the telecom sector.
The Mumbai bench of the NCLT on June 8 had allowed Twin Star Technologies’ proposal of Rs 2,962 crore to acquire 13 Videocon group companies.
The DoT has told the appellate tribunal that defaulting telcos cannot be allowed to avoid their liability by using the corporate insolvency process.
On this appeal, a three-member bench of the Appellate Tribunal said that it has asked to maintain the status quo on the order of NCST on July 19 itself with stay order. Simultaneously, the solution professionals overseeing the operations of Videocon Industries will continue their work.
The NCLAT said, “In view of the demands made by the Department of Telecom and the stay order already given, this need not be looked into in more detail.” The Appellate Tribunal will next hear the matter on January 11, 2022.
Along with this, it has also asked Videocon Industries and Videocon Telecommunications to file counter-affidavits within two weeks.
Videocon Telecommunications had given a bank guarantee of Rs 881.92 crore from State Bank of India to the DoT on getting the telecom license. But this guarantee could not be encashed due to insolvency proceedings against the company in NCLT.
After the loan resolution plan is approved, the Department of Telecom is expected to get only 0.12 percent of its dues. The NCLT had also said that the lenders are facing a loss of about 96 per cent in this proposal.