Lawstreet Journal

AGR Dues to be Paid In 10 years and First 10% to be Paid by March 2021: SC Verdict [READ JUDGMENT]

Lawstreet Journal 3 Sep 2020 8:44pm

Image courtesy: Lawstreet Journal Judiciary AGR Dues to be Paid In 10 years and First 10% to be Paid by March 2021: SC Verdict [READ JUDGMENT]

In March, the Department of Telecommunications moved a plea seeking permission for allowing staggered payment of Adjusted Gross Revenue (AGR) dues by Telcos over a period of 20 years. 

The plea was heard by the Supreme Court and the verdict was reserved on 20th July. The court said that it will not hear even for a second the arguments on reassessment or re-calculation of the AGR-related dues.

Supreme Court passed the Judgment on Tuesday and granted 10 years to telecom firms such as Vodafone Idea, Bharti, Airtel, and Tata Teleservices for paying the Adjusted Gross Revenue (AGR)-related dues to the Department of Telecommunications (DoT) with certain conditions.

The court also asked the Telcos to pay 10% of the AGR dues by March 2021. The bench headed by Justice Arun Mishra cautioned the telecom firms that failure to pay the installments of dues would incur penalty, interest, and contempt of court. 

Background of the case

There was a dispute between the Department of Telecommunication (DoT) and telecom operators on the definition of AGR. The companies went to various courts and forums challenging the definition of AGR and finally knocked the Supreme Court.

On 24th October 2019, the SC passed the verdict and cleared the definition of AGR in favor of the Department of Telecommunication and ruled that telecoms must pay outstanding dues to the DoT.

While considering the present plea for the extension of the period to settle AGR dues, the court on 11th June ordered the DoT to reconsider the claims raised on Public Sector Undertakings on… Continue Reading...


Tagged: Telecom Regulatory Authority of India  
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