AGR issue: SC draws contempt action against telcos over non-payment of dues

AGR case: SC asks telcos why contempt action shouldn't be taken against them for non-payment of dues

Telecom companies wanted to negotiate a fresh payment schedule with Department of Telecommunications, which has issued demand notices to them

The apex court was hearing fresh pleas of the telecom companies seeking a new schedule regarding the payment of the AGR dues

The Supreme Court on Friday observed and threatened the telecom companies as to why contempt proceedings should not initiated against them for not paying AGR (Adjusted Gross Revenue) dues and not complying with the SC's earlier October 23, 2019, order.

Hearing a batch of petitions filed in the case, Justice Arun Mishra said he was "literally shocked" and that "this (pleas) is nothing but a device to oblige the companies", reported Bar & Bench.

Pulling up the DoT Desk Officer, who had earlier written to the Attorney General for not insisting on the payment of AGR dues, the SC asked him why it should also not take action against him.

The apex court was hearing fresh pleas of the telecom companies, including Bharti Airtel, Vodafone Idea and Tata Teleservices, seeking a new schedule regarding the payment of the statutory dues to the tune of Rs 1.47 lakh crore to the DoT.

Apart from Mishra, the SC bench comprised Justices S Abdul Nazeer and MR Shah. The pleas filed by the telcos had sought more time for the payment of the AGR dues.

On January 16, a bench headed by Justice Arun Mishra dismissed the petitions of the telecom firms seeking review of its earlier order asking them to pay Rs 1.47 lakh crore in AGR dues by January 23, saying it did not find any "justifiable reason" to entertain them.

The apex court on October 24 last year ruled the statutory dues need to be calculated by including non-telecom revenues in AGR of telcos. It had upheld the AGR definition formulated by the DoT and termed as "frivolous" the nature of objections raised by the telecom service providers.

As per the DoT, Airtel ows Rs 21,682.13 crore as licence fee to the government and dues from Vodafone totalls Rs 19,823.71 crore, while Reliance Communications owes Rs 16,456.47 crore. BSNL owes Rs 2,098.72 crore and MTNL Rs 2,537.48 crore.

Edited by Manoj Sharma with agency inputs

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