Associate Editor, CNBC TV18, Reema Tendulkar explains why telecom operators may have to pay up AGR to the tune of Rs 92,000.
The Supreme Court has upheld the definition of Adjusted Gross Revenue (AGR) calculation as stipulated by the Department of Telecommunications (DoT). This would lead tvideo telecom companies paying up as much as Rs 92,642 crore to the government, over half of which are owed by Airtel and Vodafone alone.
Terming the issues raised by telcos with respect to AGR as ‘frivolous’, the SC held that not only the original charges, but principal interest and penalties on delayed payments would also be applicable on the service providers.
AGR is the usage and licensing fee that telecom operators have to pay the DoT.
In this special video, Reema Tendulkar, Associate Editor at CNBC TV18, explains what the issue is all about.Watch the video for more.Get access to India's fastest growing financial subscriptions service Moneycontrol Pro for as little as Rs 599 for first year. Use the code "GETPRO". Moneycontrol Pro offers you all the information you need for wealth creation including actionable investment ideas, independent research and insights & analysis For more information, check out the Moneycontrol website or mobile app.