AGR matter may end up in court yet again

NEW DELHI:  Uncertainty has cropped up yet again in a matter that has already spent 15 years in the courts and was ostensibly settled “for the final time” by the Supreme Court just last month. Industry and government sources confirmed that the affected telecom companies and the Department of Telecom (DoT) have arrived at starkly divergent interpretations of the SC’s order.

If not resolved, it is likely to result in one of the parties approaching the SC again for clarification. The bench’s final verdict had ruled that “… respective Telecom Operators shall make the payment of 10 per cent of the total dues as demanded by DoT by 31.3.2021”. The rest would have to be paid in annual 
instalments up to March 31, 2030.

The divergence in opinion arises from the fact that companies have already made partial payments toward the total demand raised by the DoT. Airtel has paid more than 40 per cent of its total Rs 43,980 crore dues and Vodafone Idea has paid around 13 per cent of the Rs 58,254 crore it owes. 

The Tata group has also paid a quarter of its total Rs 16,798 crore dues. While the companies have made no official statement on the matter, sources confirm that telcos have written to the DoT that since they have deposited more than the “10 per cent of total dues”, their next payments will only become due in March 2022. Sources however, note that the DoT believes that the SC’s order requires companies to pay 10 per cent of the total by March 2021 without factoring in the payments already made.

“If the two positions are not resolved, it is very likely that someone will head to the court again,” said a legal counsel in the know.