AGR Dues: SC directs telecom companies to pay by 2031

The Supreme Court has granted 10-year time to telecom firms like Vodafone Idea, Bharti Airtel and Tata Teleservices, etc for paying the Adjusted Gross Revenue (AGR)-related dues.

New Delhi: The Supreme Court on Tuesday granted 10-year time to telecom firms like Vodafone Idea, Bharti Airtel and Tata Teleservices, etc for paying the Adjusted Gross Revenue (AGR)-related dues to the Department of Telecommunications (DoT) with certain conditions.

The government had suggested 20 years of time but the court during the hearings had said that it was too long and ruled today that 10 years would only be given.

The court also said that telcos should pay 10 per cent of AGR-related dues by March 31, 2021. Telecom companies will have to submit an undertaking to pay AGR dues as per the court's order.

SC also cautioned telcos by saying that failure to pay installments of AGR-related dues will incur penalty, interest and contempt of court.

A bench headed by Justice Arun Mishra held that the demand made by the DoT and the verdict delivered by the top court in the matter are final.

Source: IANS

Other major points:

• Managing Director (MDs) or Chief Executive Officer (CEOs) of telcos concerned to furnish undertaking or personal guarantee within four weeks for payment of dues
• While pronouncing the verdict, the bench said that till the last instalment is paid by the telcos, their bank guarantees furnished to the DoT would be kept alive
• The court directed the telcos to pay annual installment of AGR by 7th February of every year from 2021 to 2031 and asked to make 10% of payment by 31st March 2021
• Contempt dropped
• Issue of sale of spectrum by telcos facing insolvency proceedings shall be decided by National Company Law Tribunal (NCLT)
• Bharti Airtel and reliance shares jumps; Voda-idea hits lower circuit.

The bench delivered its verdict on the issues, including the timeline for staggered payment of AGR-related dues amounting to about Rs 1.6 lakh crore.

During an earlier hearing, the bench had also heard arguments on the point as to whether spectrum can be sold by telecom companies facing proceedings under the Insolvency and Bankruptcy Code (IBC) and how the AGR-related dues can be recovered from them.