Supreme Court of India has given telecom companies 10 years to clear AGR (adjusted gross revenue) dues of around 1.43 lakh crore rupees to the Centre.
- A bench of Justices Arun Mishra, S Abdul Nazeer and MR Shah agreed with the Centre’s plea that staggered payment option be given to bail out the companies.
- The Supreme Court set a deadline of March 31, 2031 for the companies to pay the amount in annual installments. It directed the companies to pay the first installment of 10% of dues by March 31, 2021.
- The court made it clear that the companies have to pay the dues without further review as it granted the firms a 10-year window.
- Adjusted Gross Revenue (AGR) is the usage and licensing fee that telecom operators are charged by the Department of Telecommunications (DoT). The contention is on the particulars considered to calculate the amount payable.
- As per DoT, the charges are calculated based on all revenues earned by a telco – including non-telecom related sources such as deposit interests and asset sales. Telcos, on their part, insisted that AGR should comprise only the revenues generated from telecom services.
- The Supreme Court has upheld the definition of Adjusted Gross Revenue (AGR) calculation as stipulated by the Department of Telecommunications.
(AIR and Moneycontrol)
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