SC Affirms Spectrum as Public Resource | 16 Feb 2026

Source: TH

The Supreme Court of India has clarified that telecom spectrum is a public resource owned by the Union of India and cannot be treated as a corporate asset of Telecom Service Providers (TSPs) for sale or restructuring under the Insolvency and Bankruptcy Code (IBC), 2016. 

• Limited Privilege: Spectrum (refers to the specific frequency bands used for communication via satellites) is granted as a limited, conditional, and revocable privilege to use, not as a proprietary interest.  
  • This right is subject to statutory requirements, license conditions, and overriding public interest. 
  • The Court clarified that licensing rights recorded as intangible assets in financial statements do not equate to ownership.  
  • Spectrum licensing merely represents control over future economic benefits, whereas the legal title vests exclusively with the Union of India. 
• Exclusion from IBC: The judgment held that the IBC excludes assets over which a corporate debtor has no ownership rights.  
  • Since TSPs do not own the legal title to spectrum, it cannot be included in the pool of assets for insolvency resolution or liquidation. 
• Supremacy of Telecom Laws: The Court noted that the statutory regime under IBC cannot restructure rights and liabilities of spectrum usage, which operate under the exclusive legal regime of the Telecommunications Act, of 2023 and Telecom Regulatory Authority of India Act, 1997. 
• Public Trust Doctrine: Reaffirming that the State acts as a trustee for the people, the Court emphasized that spectrum management must subserve the common good and adhere to Article 14 (Fairness and Transparency). 
• Significance: This ruling is a significant setback for financial creditors (like SBI) who sought to monetize spectrum rights to recover loans.  
  • The Department of Telecommunications (DoT) now has the path clear to reclaim airwaves from defaulting operators like Aircel and RCom.