Chart plan to recover AGR dues: SC
NEWDELHI: The Supreme Court on Monday directed the government to prepare a plan to recover adjusted gross revenue (Agr)-related dues from bankrupt telecom operators, including Reliance Communications Ltd (Rcom), Aircel Group and Videocon Communications Ltd.
While observing that recovery of dues may not be possible from telcos undergoing insolvency, the apex court asked the government whether spectrum can be sold under the Insolvency and Bankruptcy Code (IBC). The case has been adjourned to August 14.
The court, however, did not mention the order reserved on the staggered payment of dues by Vodafone Idea Ltd, Bharti Airtel Ltd and Tata Teleservices. Both Vodafone and Airtel have sought 15 years to clear the dues, while Tata Teleservices wants 7-10 years. However, recovery of the dues face a major hurdle. The department of telecom (DOT) is classified as an operational creditor, Rcom said in its affidavit to the apex court. This would mean DOT will be pushed lower down the pecking order in trying to recover its dues under insolvency proceedings, as financial creditors are prioritised under these proceedings. For instance, the winning bidder for Rcom’s spectrum, real estate, enterprise and data centre business UV Asset Reconstruction Co., has offered ₹14,000 crore for these assets.
DOT may recover next to nothing on its outstanding dues of ₹25,199 crore from Rcom if this resolution plan is approved.