Telcos to take a call on paying AGR dues today

MODIFICATION PETITION Voda Idea awaits SC hearing, Airtel yet to reveal plan

NEWDELHI: Vodafone Idea Ltd, the worst hit by the top court’s order on telecom dues, will await the hearing of its modification plea seeking easier payment terms before clearing dues to the government, a person aware of the development said.

While Reliance Jio Infocomm Ltd, the least affected by the court order, indicated that it will pay dues before the January 23 deadline set by the court, Bharti Airtel chose not to reveal its exact plan, although the company has raised $3 billion earlier this month to repay dues, according to three people aware of the development, who requested anonymity.

The October 24 court order that ended a 14-year legal battle between telcos and the department of telecommunications (DOT) asked India’s top wireless carriers to cough up more than ₹1 trillion in dues, straining their already precarious financial situation. Failure to pay the dues before the deadline may invite contempt of court proceedings against defaulters, legal experts believe.

“Since no order has been passed by the court deferring the deadline, failure to make payment by 23 January can lead to contempt of court,” said Sandeep Grover, partner at Ortis Law Offices. “However, as the modification plea itself relates to extension of time, it is highly unlikely for DOT to take coercive action against the carriers till the plea is heard by the court next week.”

Vodafone Idea owes over ₹50,000 crore to DOT, while Bharti

Airtel has to pay ₹35,586 crore. Tata Teleservices, which sold its mobile services business to Airtel, has dues of ₹14,000 crore. Jio owes ₹60 crore as it started operations only in 2016.

“Reliance Jio will make the payment tomorrow (23 January),” one of the people cited earlier said.

Vodafone Idea will wait till its modification plea is heard by the Supreme Court, said the people cited earlier.

While the Supreme Court on Tuesday agreed to hear modification pleas filed by Vodafone Idea, Bharti Airtel and Tata Teleservices, it did not comment on the status of the original payment deadline. This means that DOT can press for dues if the January 23 deadline is not adhered to.

“DOT has got requests from

Airtel and Vodafone Idea not to press for dues till the court hears the plea next week. However, if DOT sends a demand notice, Airtel will pay. DOT is also awaiting a green signal from the court next week whether it is allowed to give easier payment terms to telcos,” said one of the people cited earlier.

Emails sent to DOT, Bharti Airtel, Vodafone Idea and Tata Teleservices were unanswered till press time.

While the Supreme Court verdict has hit telcos, it has also made non-telecom firms holding licences for internal communications and signalling liable to pay licence fees on their entire revenue, even if they do not offer telecom services.

Oil India on Wednesday filed a modification plea before the top

court against its October verdict. “Oil India has taken up this matter with the department of telecommunications and the ministry of petroleum and natural gas, along with other affected central public sector enterprises, and explained the non-applicability of interpretation of AGR to non telecom companies,” the company said.

DMRC has moved court seeking clarification stating that Dot’s “unjust demand” would lead to “evaporation of financial structure of DMRC and would lead to operations coming to a standstill to the great detriment of the commuting public of NCR region”.

Mint has seen a copy of DMRC’S petition. Emails sent to GAIL and Power Grid were unanswered till press time.