The Supreme Court today directed telecom companies to come up with a reasonable payment plan to clear their dues with the government, and directed them to submit their books of account for the past 10 years. The top court also asked the government to consider payment proposals by telecom companies and revert on the matter. "Telecom is the only sector making money during the coronavirus pandemic. Must deposit some amount. Government needs this money during the pandemic," a three-judge bench told telecom companies.
Vodafone Idea told the top court that it does not have any funds to make new guarantees due to losses stretching to several quarters, and it has already provided bank guarantees worth Rs 15,000 crore for spectrum and license fees to the government.
The government's Department of Telecommunications (DoT) told the court it has decided to withdraw 96 per cent of Rs 4 lakh crore in dues demanded from non-telecom state-run companies, in relief for companies including GAIL India, Oil India, Delhi Metro Rail Corporation and Power Grid.
Last week, the top court had accused the government's telecom department of misusing an earlier judgment for demanding Rs 4 lakh crore from state-run firms, warning of contempt proceedings against the officers involved.
"Since public-sector undertakings are not in the business of telecom services, we are withdrawing demands for dues," Solicitor General Tushar Mehta - appearing for the DoT - told the top court.
The Department of Telecommunications has pegged Bharti Airtel's dues at Rs 43,980 crore, Vodafone Idea at Rs 58,254 crore and Tata Group at Rs 16,798 crore.
The dispute centers around the definition of adjusted gross revenue (AGR). Telecom companies pay a percentage of their revenues as license fee to government.
They argue that non-core business like rent or income from sale of handsets or roaming charges should not be included in the revenue of which they pay a percentage - they want to pay only on revenue earned from their core business. The court did not agree.
In October last year, the Supreme Court had allowed the telecom department to recover adjusted gross revenue-related dues worth Rs 92,000 crore from telecom companies. Following the court's order, the telecom department had sought a cumulative Rs 2.7 lakh crore from GAIL India and other non-telecom PSUs.
State-owned firms including GAIL and Oil India challenged the demand, arguing that they did not owe any dues as the court judgement did not apply to them. The government argued today that these firms held the telecom spectrum.
