INDUSTRY

Supreme Court dismisses pleas by telcos seeking recalculation of AGR dues

The Supreme Court (SC) has termed pleas filed by Bharti Airtel, Vodafone Idea and Tata Teleservices, seeking recalculation of the adjusted gross revenue (AGR) dues, as “misconceived”. The top court has added that the relief sought by the telecom companies (telcos) would alter the quantum of dues confirmed by it in its July 2020 order. 


A three-judge SC bench, headed by Justice L N Rao, had on Friday quashed the telcos’ petitions, seeking rectification of mathematical errors in calculating their AGR dues. 


It also noted that “senior counsel were in unison in submitting that the applicants are not seeking any positive direction, except to permit the Union of India to verify their accounts and rectify the defects in computation of AGR dues, if any”. 


“Though these applications appear to be innocuous at first blush, the end result of the relief sought by the applicants in the guise of correction or rectification of the defects or arithmetical errors in calculation of AGR dues, as specified in the order of this court on 20-07-2020, being altered,” said the bench in its order on Friday. 


“The dispute relating to AGR dues had remained pending in courts for a very long period of time, and bearing this in mind, this Court was at pains to empathise, at the cost of repetition, that the AGR dues payable by TSPs (telecom service providers) cannot be subject matter to any future litigation,” the verdict further read. 


To recap, Airtel, Vodafone Idea and Tata Teleservices had filed individual applications before the Supreme Court in January, seeking clarification, modification or recall of its previous AGR judgment. The telcos say that there are clerical or arithmetic errors in the DoT’s calculations of AGR, and that the actual amount due is much lesser. According to the DoT’s calculations, the three telcos are supposed to pay Rs 1,02,234 crore. 


Airtel has already paid Rs 18,004 crore (out of Rs 43,980 crore demanded), while Vodafone Idea has paid Rs 7,854 crore (out of Rs 58,254 crore). Airtel has self-assessed its dues at Rs 18,004 crore, just 41 per cent of DoT estimates, whereas Vodafone Idea has self-assessed its dues at Rs 25,000 crore, about 43 per cent of the DoT’s demand.  

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