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Last Updated : Aug 14, 2020 11:39 AM IST | Source: Moneycontrol.com

AGR case: SBI files intervention plea on behalf of Reliance Communications

The amount recoverable from RCom is Rs 31,000 crore, Solicitor General Tushar Mehta said on August 10.

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State Bank of India (SBI) on August 12 filed a plea in the Supreme Court (SC), requesting approval to intervene on behalf of Reliance Communications in the adjusted gross revenue (AGR) case.

SBI said that outstanding payments to operational creditors are prioritised over financial creditors during a resolution plan, according to a Business Standard report.

The interests of the Department of Telecommunications (DoT) are sufficiently protected under the Insolvency and Bankruptcy Code (IBC) since the telecom regulator is an operational creditor, the lender said.


Also Read: AGR Hearing Highlights | SC adjourns hearing on telcos under insolvency to August 14

SBI filed the plea on behalf of RCom's Committee of Creditors (CoC), which includes Bank of Baroda, Axis Bank, UCO Bank, Punjab National Bank, HDFC, and LIC.

The amount recoverable from RCom is Rs 31,000 crore (inclusive of spectrum usage and licensing charges), Solicitor General Tushar Mehta told the apex court on August 10.

The DoT had calculated RCom's AGR-related dues at around Rs 25,000 crore.

During the previous SC hearing in the AGR case, Justice  Arun Mishra said, "We want to go into the cause for initiation of insolvency against telcos under the IBC".

The SC had asked for a plan to recover AGR dues from telecom companies going through insolvency proceedings, such as RCom and Aircel.

The SC will next hear the AGR case at 3 pm on August 14, and might give a verdict on the subject of staggered payments.
First Published on Aug 14, 2020 11:34 am