The Supreme Court on Friday, July 23, has dismissed the petition of telecom companies seeking re-calculation of AGR dues. Bharti Airtel, Vodafone Idea and Tata Teleservices had alleged error in calculation of outstanding adjusted gross revenue (AGR) in the petition. A bench of the Supreme Court headed by Justice L Nageswara Rao dismissed the petition. Shares of Vodafone Idea fell more than 8 percent after this decision and it is currently trading at Rs 8.50 with a fall of 8.11 percent on the NSE.
S&P gave negative rating to Adani Discom, due to this the company’s outlook was downgraded
Petition on complaint of mistake in calculation of arrears
Telecom companies had complained in the petition filed in the Supreme Court that there was a mistake in the calculation of AGR dues and it can be rectified. According to the petition filed by the companies, in the calculation of AGR dues done by the Department of Telecom, many bills have been added twice. The Supreme Court, while hearing the matter on July 19, a few days ago, had reserved the decision.
Arrears to be paid in ten years
Last year in September 2020, the Supreme Court had given 10 years time to telecom companies to pay the AGR dues, giving big relief. The court had said in its decision that telecom companies will have to pay 10 percent in advance and then pay installments on time every year. According to the Department of Telecom, the telecom companies had dues of Rs 1,19,292 crore, out of which Rs 25,896 crore has been paid and now they have to pay Rs 93,520 crore. According to the decision pronounced in September 2020, companies have to pay the dues on 7 February every year and will have to pay penalty and interest for default. At present, Bharti Airtel owes Rs 25,976 crore, Vodafone Idea Rs 51,400 crore and Tata Tele Services Rs 12,601 crore.