HomeLatest NewsTelcos' AGR dues cannot be subject material of any future litigation: SC

Telcos’ AGR dues cannot be subject material of any future litigation: SC


The Adjusted Gross Income (AGR) associated dues payable by telecom majors, together with Vodafone Thought and Bharti Airtel, can’t be a subject of any future litigation, the Supreme Courtroom has stated.


A bench headed by Justice L Nageswara Rao said this whereas dismissing the plea of telcos searching for rectification of alleged errors within the calculation of AGR.





The highest court docket stated the dispute referring to AGR has been pending in courts for a really lengthy time frame and the dues payable by TSPs (Telecom Service Suppliers) can’t be the subject material of any future litigation.


It stated there isn’t a room for any doubt from the perusal of the sooner judgement dated September 1, 2020 with respect to this court docket entertaining any software for altering the AGR dues of the TSPs.


The court docket stated that points in regards to the ambit of proceedings underneath Part 18 of the Insolvency and Chapter Code, 2016 in relation to spectrum, the way wherein fee needs to be made by and liabilities apportioned between the TSPs in case of spectrum sharing and spectrum buying and selling, “with which we’re not involved in these Functions”, had been additionally handled in its judgment dated September 1, 2020

The telecom firms had pleaded earlier than the apex court docket that arithmetical “errors” within the calculation be rectified and claimed there have been circumstances of duplication of entries.


Although these functions look like innocuous at first blush, the tip results of the reduction sought by the candidates within the guise of correction or rectification of the defects or arithmetical errors within the calculation of AGR dues, could be recalculation which might quantity to the AGR dues, as specified within the order of this Courtroom dated July 20, 2020, being altered.


The dispute referring to AGR dues had remained pending in courts for a really lengthy time frame and bearing this in thoughts, this Courtroom was at pains to stress, at the price of repetition, that the AGR dues payable by TSPs can’t be the subject material of any future litigation, the bench additionally comprising justices S A Nazeer and M R Shah stated.


The apex court docket stated the order dated July 20, 2020 makes it clear that there isn’t a scope for any recalculation/re-computation of AGR dues.


Even on the time of passing of the order dated July 20, 2020, an try was made to hunt recalculation and reassessment, as recorded within the order, which was rejected by this Courtroom outright, the bench stated.


The highest court docket in September final yr had given a time interval of 10 years to telecom service suppliers struggling to pay Rs 93,520 crores of AGR-related dues to clear their excellent quantity to the federal government.


Throughout the listening to on the functions on July 19, the bench had referred to an earlier order handed by the apex court docket within the matter and noticed that it stated no re-assessment of AGR-related dues could be executed.


One of many attorneys representing a telecom agency had contended that they weren’t blaming the Division of Telecommunications (DoT) for it as there are arithmetical entries and so they wish to place the entries earlier than the division in order that they will re-consider it.


In its September final yr order, the apex court docket had stated that telecom operators shall make the fee of 10 p.c of the full dues as demanded by the DoT by March 31, 2021 and the remainder quantity to be paid in yearly installments commencing from April 1, 2021 to March 31, 2031.


The highest court docket, which had held that demand raised by the DoT in respect of AGR dues shall be remaining, had stated there shall be no dispute raised by the telcos and there shall not be any re-assessment.


The apex court docket had in October 2019 delivered its verdict on the AGR subject.


The DoT in March final yr had moved a plea within the prime court docket searching for permission for permitting staggered fee of the dues by the telcos over a interval of 20 years.

(Solely the headline and movie of this report might have been reworked by the Enterprise Commonplace workers; the remainder of the content material is auto-generated from a syndicated feed.)

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