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Last Updated : Aug 06, 2020 09:59 PM IST | Source: Moneycontrol.com

AGR case: Supreme Court hearing on August 10; dues repayment time frame yet to be decided

The SC had, in its previous hearing in the matter on July 20, asked RComm, Videocon and Aircel to submit all records and details of insolvency within 7 days.

Supreme Court of India
Supreme Court of India

The Supreme Court will be hearing the adjusted gross revenue (AGR) case next on August 10, with the order on a time frame for 'staggered' repayment of dues by telcos yet to be pronounced.

While hearing the plea by telecom companies seeking permission for a staggered repayment of their AGR dues on July 20, the apex court had reserved its order in the matter. At the time, the court had also observed that there is no scope for any re-assessment or re-calculation of said dues, adding that the calculation given by the telecom department is to be treated as final.

The SC had, in its previous hearing in the matter, asked RComm, Videocon and Aircel to submit all records and details of insolvency within seven days. It had said that it wanted to look into the bonafide of the decision to invoke insolvency on the part of several companies with AGR dues of over Rs 38,000 crore, that are currently in liquidation. The issue of companies under liquidation, however, will be considered by the court on August 19.

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In its October 24 order last year, the SC upheld the definition of AGR calculation as stipulated by the Department of Telecommunications (DoT). The government had suggested that the revenue from the non-core businesses should also be included in arriving at the annual AGR amount. A part of the AGR is paid by telecom companies as licence and spectrum fee to the exchequer.

As per DoT estimates, telecom companies owe a total of Rs 1.19 lakh crore with payments received so far at Rs 26,896 crore.

However, burdened by the excessive dues, telcos had appealed to the court to provide the option of staggered repayment over 10-20 years. The court, however, noted that telecom companies cannot be permitted to make staggered payments over 20 years without providing any security.

In an earlier hearing on June 18 this year, the SC had asked telecom companies to make a minimum payment to show bonafide, provide a roadmap of payments if allowed to stagger payments and provide books of accounts for the last decade for assessment.
First Published on Aug 6, 2020 09:59 pm
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