SC reserves order on timeline for payment of AGR dues by telcos

The Supreme Court on Monday reserved its order on the timeline for the payment of Adjusted Gross Revenue (AGR) dues by telecom companies and slated the next hearing in the matter on August 10.

New Delhi:The Supreme Court on Monday asked for the insolvency records of telecom companies (Aircel, Reliance communication and Videocon) by 7th August and adjourned the hearing for 10th August reserving the order on the timeline for paying off the Adjusted Gross Revenue (AGR) by the telcos.

Justice Arun Mishra led bench also made it clear that they won't be reassessing the amount or recalculating the dues.

"While hearing the matter an attempt was made to wriggle out of our order in the garb of reassessment or recalculation. However, there can be no adjustment regarding the dues apart from what was stated in the Supreme Court verdict. No objection will be entertained," dictated the bench in its order.

Vodafone, Tata and Airtel assured the court that they are not seeking for any reassessment, just time to pay. SG Tushar Mehta also said that the government will follow the verdict and will not reassess the dues.

Senior Advocate Mukul Rohtagi appearing for Vodafone pleaded before the court that the company's entire investment in India has been wiped out, around Rs 1 lakh crore equity has been wiped out and whatever earnings were there have been washed away in expenses.

"We have a net loss of Rs 2,800 crores in the first year, Rs 1,800 crores loss in next and thereafter a loss of Rs 523 crores. Total revenue over 10 years is Rs 6 lakh crores, out of which expenses were Rs 495 crores," said Rohtagi.

SC asked how is it planning to pay off the dues if it is running in loss for decades.

"How can we rely on you?", questioned the judges. Vodafone assured that it will honour the top court's verdict, if not in one stroke then in parts. GST credit of around Rs 80 billion is the only asset and the government can retain it, said Vodafone.

SG submitted before the court that Vodafone has paid Rs 7,854 crores and the due is Rs 50,399 crores, Airtel has paid Rs 18,004 crores and has to pay Rs 25,976 crores more and Tata telecom has paid Rs 4,197 cores and the remaining balance now is Rs 12,601 crores.

Justice Arun Mishra pulled up Tata for not paying inspite of earnings and said that "We know how jugglery of accounts takes place so don't teach us".

"This country is suffering due to all of you. We will impose costs if you don't adhere to our orders. You don't know what we are thinking," said Justice Mishra.

Lashing out at the telcos for disputing their liabilities, the court denied the advocates for any more affidavits and asked for the time limit in which they will clear off their dues.

Vodafone idea, Bharti Airtel said that instead of 20 they will pay off in 15 years.

SG said that 20 years time is a reasonable time and the government has taken this decision to save the economy. Not seeming to be convinced and expressing their apprehensiveness on co.s going into liquidation, the court asked to submit the liquidation process.