Telcos get no respite from SC, have to pay ₹1.69 lakh crore dues
NEW DELHI: The Supreme Court (SC) on Wednesday shot down a telecom ministry directive that allowed operators to reassess their dues related to a court order and asked the government to stick to its original demand for ₹1.69 lakh crore, dealing a further blow to India’s struggling telcos.
Reprimanding the department of telecommunications (DoT) for allowing self-assessments— which turned out to be far lower than government estimates—the apex court called the exercise a fraud and asked the department to withdraw the move.
The dues relate to fees for spectrum and licence, penalty and interest calculated on the basis of their adjusted gross revenue (AGR).
An apex court bench headed by Justice Arun Mishra, however, said it will hear arguments on the government’s petition to allow companies to make staggered payments over a 20-year period at its next hearing, likely after two weeks.
The government had on Monday sought the court’s permission to allow telecom operators to pay their licence and spectrum usage fee dues over 20 years, offering a flicker of hope to struggling telcos such as Vodafone Idea.
The SC on October 24 upheld the government’s broader definition of AGR, on which it calculates levies on telecom operators. Following the court order, DoT asked telcos to conduct self-assessments of their dues and make immediate payments.
Withdrawing self-assessment estimates would mean Vodafone Idea would have to pay an additional ₹51,400 crore which, in the absence of a staggered schedule, could be a death sentence for the cash-strapped mobile operator.
Similarly, Bharti Airtel would need to pay nearly ₹26,000 crore, putting it back under strain.
The court was also harsh on DoT officials who allowed self-assessment, saying they will not be spared. “They think they are more superior than us? Who is this gentleman who has allowed self assessment?” Justice Mishra said. “How is this not sheer contempt?”
Vodafone Idea was initially estimated to have dues of ₹58,254 crore, including penalty and interest, based on the telecom department’s estimate. The company’s assessment, though, pegged it at ₹21,533 crore. So far, the telco has paid ₹6,854 crore, which is the entire principal amount it had self-assessed.
Bharti Airtel Ltd pegged its dues at ₹13,004 crore after self-assessment, less than a third of the ₹43,980 crore estimated by DoT. The amounts include Telenor India’s dues as well, which Bharti Airtel had acquired in 2018.
Bharti Airtel paid ₹18,004 crore to the government, which includes an additional ₹5,000 crore to cover any differences that may arise between the DoT and the company.
The Tata group paid about ₹4,197 crore, much lower than the ₹16,798 crore estimated by the DoT for the group’s telecom firms which have been shuttered.
Reliance Jio Infocomm Ltd is the only firm which has paid more than the DoT estimate.