Hindustan Times ST (Mumbai)

Assessing...

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The verdict had mandated telecom companies to pay the adjusted gross revenue (AGR) dues of over ₹1 trillion to the DOT by January 23.

The developmen­t came as a fresh blow for Vodafone Idea, once India’s largest telco by subscriber base.

Vodafone Idea owes DOT over ₹50,000 crore.

The company is in a perilous state after a more than three yearlong battle in the hyper-competitiv­e telecom sector, which has shrunk its revenue streams and saddled it with debt.

“This case projects a very disturbing scenario. The companies have violated the order passed by this court in pith and substance. In spite of the dismissal of the review applicatio­n, they have not deposited any amount so far. It appears the way in which things are happening that they have scant respect to the directions issued by this court,” the Supreme Court order had said on Friday.

Ending a 14-year-long court battle, the apex court on October 24 had upheld the government’s broader definition of revenue, on which it calculates levies on telecom operators. The order had dealt a body blow to the telecom industry.

Vodafone Idea, Bharti Airtel and Tata Teleservic­es last month filed modificati­on pleas seeking more time to pay Agr-related dues which the apex court had agreed to hear.

Following which, the DOT had on January 23 asked its officers not to take coercive action against telcos for non-payment of dues.

The top court judges hearing the case made scathing remarks about an unnamed desk officer for passing such an order.

“In the circumstan­ces, we draw contempt proceeding­s against the desk officer for passing the order and violating the order passed by this court. The managing directors/directors of the companies also to show cause why we should not initiate contempt proceeding­s against them for violating the order passed by this court by not depositing the amount, on the next date of hearing… It is made clear that in case the order passed by this court is not complied with, the above persons shall remain personally present in court on the next date of hearing,” the order said.

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