The telecom department on Friday filed an application with the NCLT contending that spectrum should not be a part of the resolution plan for Anil Ambani's Reliance Communications and its sister concern Reliance Telecom.
The Department of Telecommunications (DoT) filed an affidavit detailing its objections, which said that spectrum cannot be sold under the resolution process.
The resolution professional (RP) has asked for some time to consider the affidavit and respond if the need arises.
The National Company Law Tribunal (NCLT) has kept the matter for hearing on September 8.
The DoT objection is likely to add twist to RCom's insolvency resolution plan that its lenders had submitted in March for the tribunal's approval.
The objection came after the Supreme Court recently asked the government to clarify how it plans to recover dues from bankrupt telcos, which also include Aircel and Videocon.
The apex court had previously asked the government to investigate whether any bankrupt telcom firm is misusing the insolvency process to avoid paying dues.
The Supreme Court is also hearing a matter whether such companies can be allowed to sell spectrum held by them to repay their dues.
RCom is staring at dues of Rs 49,054 crore to its lenders and Rs 25,199 crore in spectrum usage charges and license fee to the DoT, according to the government estimates.
UV Asset Reconstruction (UV ARC) and Reliance Jio - the winning bidders for RCom's spectrum, real estate, enterprise, tower and data centre business - have together offered more than Rs 20,000 crore for these assets.