Tuesday, 19 October 2021

SC Reject to recalculate about AGR Dues, Telecom financially hit

upreme Court Reject to recalculate about AGR Dues, Telecom financially hit.

After successful the fifteen-year-long legal battle, the Department of Telecommunications had slapped the charges on the telecom company. The older telecom companies now stand on edge regarding these dues as they are the ones to shoulder this burden after SC Reject AGR dues.

One of the heaviest financial burdens that the telecom companies in India face now includes the Adjusted Gross Revenue (AGR). After a successfully fifteen-year-lengthy legal battle, the Department of Telecommunications (DoT) had slapped these charges on telecom companies. The older telecom companies also now stand on the edge regarding the dues as they are the ones to handle the burden.

Tata Teleservices, Bharti Airtel, and Vodafone Idea were requested to pay Rs 91,000 crore in total in the beginning. However, these telecom companies have been possibly opposing AGR dues. In the last help, these companies had addressed to SC, filing an appeal for payment recalculation.

A decision was not to change by SC.

Supreme Court Reject to recalculate about AGR Dues Telecom financially hit 1getty image

Read More: Bharti Airtel and Vodafone's Idea Might Have Good News Coming In!

However, the result of the Supreme Court hearing did not turn in favor of the telecom companies. The Supreme Court rejected all three Vodafone Idea, Bharti Airtel, and Tata Teleservices pleas.

As per an ET Telecom report, this order, which passed on Friday, said that there is no scope for recalculation of the AGR dues.

The recent Supreme Court ruling also highlighted and referenced the judgment passed last year in the same matter in July.

The three judges bench consisting of Justice LN Rao said that in the previous attempt as well, these telecom companies had requested a recalculation of the dues.

During that time, the appeal was rejected. The Supreme Court maintains the same stance in the matter for now. Here means that the licenses that these telecom companies have to pay to remain in the same quantum.

VI to be Hit hardest by the decision

On the other hand, if the plea had gone the telcos’ way, then the previous order would have had to be struck down.

The AGR dues which plague the balance sheet of Vodafone Idea, Bharti Airtel, and Tata Teleservices amount to a total of Rs 1.19 lakh crore at present which are to payout in ten years.

Out of this amount, approximately Rs 30,000 crore has already been paid by the telecom companies.

Out of all, Vodafone Idea is the most brutal hit, and this is the reason why it plans to raise around Rs 24,000 crore to pay off its AGR dues along with others.

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