November 29, 2022

Paull Ank Ford

Business Think different

SC gives telcos 10 yrs to clear AGR dues, NCLT to decide on spectrum sale

The Supreme Court in its judgment in the matter of altered gross revenue allowed telcos to fork out their exceptional dues in 10 decades. Telcos can fork out 10 for each cent of their dues by March 31, 2021, and the remaning instalments by seven February just about every yr.

Any default will accrue curiosity and non-payment will also invite contempt of court docket proceedings, said the SC in its verdict. The organizations have been requested to hold altering lender ensures alive until the time the payment is created.


On the dilemma of irrespective of whether telcos could market spectrum, the SC has remaining the dilemma to the wisdom of the National Enterprise Legislation Tribunal (NCLT). There is no clarity so much on the SC’s choice on irrespective of whether Reliance Jio would have to fork out the dues of Reliance Communications, whose spectrum it is applying — and irrespective of whether Bharti Airtel would have to clear the dues of Aircel and Videocon for the exact same purpose.

Previously, after the best court docket experienced rejected pleas by Vodafone Plan, Bharti Airtel, and Tata Teleservices seeking review of the judgment which widened the definition of AGR by together with non-telecom revenues, the DoT experienced in March moved a plea seeking staggered payment more than twenty decades.

The Supreme Court completed listening to the AGR situation on August 24, just about a yr after its verdict on the definition of AGR.

The SC experienced to provide judgment on three issues connected to telecom sector. The to start with 1 being on the tenure for staggered payment of AGR dues.

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The 2nd was connected to the clarification on irrespective of whether or not Reliance Jio experienced to fork out the AGR dues invoice of RCom, and Bharti Airtel of Aircel and Videocon.

And three, it will direct financial institutions on irrespective of whether they can, as creditors, transfer spectrum, which is a countrywide asset, to a new purchaser less than IBC, without the need of to start with having cognizance of the dues of the authorities. The apex court docket has remaining this dilemma for the NCLT to make a decision,

SC in October 2019 sent the verdict on the AGR issue for calculating authorities dues of telecom organizations such as licence charge and spectrum use charges.