Telcos get relief, can pay ADR dues over 10 yrs

Centre had asked SC to allow 20 yrs

Giving major relief to telecom service providers ( TSPs) facing financial stress, the Supreme Court on Tuesday permitted them to make staggered payment of their Adjusted Gross Revenue ( AGR) dues over a period of 10 years. The Centre had earlier suggested giving TSPs 20 years’ time to make the payments.

Permitting the TSPs — including Airtel and Vodafone- Idea — to clear all their outstanding AGR dues in 10 years, ending on March 31, 2031, a bench comprising Justices Arun Mishra, S. Abdul Nazeer and M. R. Shah, however, said that to start with the TSPs would make payment of 10 per cent of their total AGR dues as demanded by the department of telecommunications by March 31, 2021.

Shutting the door on any further litigation by TSPs seeking reassessment of their AGR dues, Justice Mishra, pronouncing the judgment, said: “That for the demands raised by the department of telecom in respect of AGR dues based on the judgment of this court, there shall not be any dispute raised by any of the telecom operators and that there shall not be any reassessment.”

Issuing a slew of directions, Justice Mishra said the fate of the spectrum held by the companies facing insolvency proceedings — RCom, Aircel and Videocon — and the various questions associated

with it will be decided by the National Company Law Tribunal ( NCLT), a suggestion that was made to the court by senior counsel Harish Salve in the course of the hearing, which Justice Mishra said has been accepted.

The court directed the TSPs will make payments in annual instalments starting from April 1, 2021 till March 31, 2031, payable by March 31 of every succeeding financial year.

The court further directed that all TSPs and the DoT would report to the court on compliance of its order by April 7 of every year.

Any default in the payment of yearly instalments by the TSPs, the court said, would attract interest payable as per agreement along with penalty and interest on penalty automatically without reference to the court.

Any default in the payment of yearly instalments, the court said, would be punishable for contempt of court.