Stock Analysis, IPO, Mutual Funds, Bonds & More

Supreme Court to hear telecom companies' AGR case today

SC is set to hear the AGR case on Wednesday, and the govt's application that telcos be allowed to spread the payment of their dues over 20 years or less.

ET Bureau|
Last Updated: Mar 18, 2020, 11.47 AM IST
Getty Images
New Delhi: The Supreme Court is set to hear the adjusted gross revenue (AGR) case on Wednesday, and the government’s application that telcos be allowed to spread the payment of their dues over 20 years or less.

A three-judge bench led by Justice Arun Mishra, and comprising Justices S Abdul Nazeer and MR Shah will also hear an application by consumers rights body Save Consumer Rights Foundation, opposing the government’s proposal for staggered payment of AGR dues.

The same bench had backed the Department of Telecommunications (DoT) while ruling on October 24 that AGR should include non-core items, leaving the industry in turmoil. The wider definition of AGR left 15 telcos, including many that are now defunct, facing over ₹1.43 lakh crore in license fees, spectrum usage charge, interest and penalties. Vodafone Idea, Bharti Airtel and Tata Teleservices were the worst affected with combined dues of ₹1.19 lakh crore.

In its application filed on Monday, the government cited an “adverse impact” on the economy, jobs and millions of consumers from the collapse of a telco while urging the court to accept its formula to receive the AGR dues over 20 years or less. The formula includes freezing interest and penalty components as of October 24, and protecting the net present value “using the discount rate” of 8%.

It also proposed that discrepancies between preliminary amounts assessed by the DoT and self-assessments by telcos would be reconciled. The balance dues could be adjusted over the payment period, which may go up to 20 years.
(Catch all the Business News, Breaking News Events and Latest News Updates on The Economic Times.)

Also Read

Government detaches GAIL, OIL, other PSUs from AGR case

Supreme Court to hear AGR case, government plea on AGR relief on March 18

Add Your Comments
Commenting feature is disabled in your country/region.

Other useful Links

Copyright © 2020 Bennett, Coleman & Co. Ltd. All rights reserved. For reprint rights: Times Syndication Service