SC to hear telcos’ petition on AGR dues next week
NEW DELHI: Tuesday brought a flicker of hope for India’s embattled telcos with the Supreme Court agreeing to hear their petitions to modify its October 24 order that made them liable to pay up more than ₹1 lakh crore of adjusted gross revenue (AGR) dues by January 23.
The matter was mentioned before a bench headed by chief justice SA Bobde on Tuesday and the case is likely to be heard next week. The telcos had filed the modification pleas on Monday.
The court, however, did not comment on the status of the original payment deadline.
“Vodafone Idea Ltd will not make the payment by January 23,” said a person aware of the development, requesting anonymity.
The pleas filed by Vodafone Idea, Bharti Airtel, and Tata Teleservices seek more time to pay AGR related dues. The telcos want to negotiate a sustainable payment schedule with the department of telecommunications (DOT), which has issued demand notices for revenue share, interest, and penalty.
Bharti Airtel’s petition said it would need more time to calculate dues across 22 telecom circles over the last 15 years, which is a complex process. Vodafone Idea, meanwhile, said it does not have the resources to pay such huge amounts. As such, if suitable payment terms are not made available, it will lead to the immediate closure of one of the largest and oldest telecom companies in India, causing disruption to 300 million subscribers and putting lakhs of jobs at risk, its petition said.
Mint has seen copies of both petitions.
The Cellular Operators Association of India hailed the court’s admission of the modification pleas as a positive move for the sector.
“Telcos have indicated their willingness to pay AGR dues. We are now asking for appropriate terms to make this payment. We have sought a debt package from DOT to make payments affordable. We want an adequate moratorium and a 15-year period to pay the entire AGR dues (principal and interest and penalty),” said Rajan Mathews, director general, COAI.
Emails sent to Bharti Airtel, Vodafone Idea, and Tata Teleservices were not answered till press time.