AGR: SC asks DoT to reconsider demands made to non-telecom PSUs

Tribune News Service

New Delhi, June 11

The Supreme Court on Thursday asked the DoT to reconsider the demands raised against PSUs on the basis of its 2019 judgment on Adjusted Gross Revenue (AGR).

The verdict couldn’t have been made basis of raising demands from Public Sector Undertakings (PSUs), a Bench headed by Justice Arun Mishra clarified.

The Bench asked private telecom companies to file affidavits explaining how they planned to pay their dues even as counsel for Vodafone, Airtel and others said their licences might get cancelled for non-payment within the agreed timeframe.

The top court asked the telcos to provide a roadmap for payment of dues on account of AGR along with timeline and security they can provide to guarantee payment.

Also read: Vodafone says no money to even pay salaries, Airtel says already paid 70 pc

The Bench posted the matter for further hearing on June 18.

The private telecom companies wanted the DoT to allow staggered payment of AGR dues. The Centre has supported their plea for staggered payment. Asking them to pay the entire amount at once will adversely impact the telecom industry, Solicitor General Tushar Mehta said.

However, the Bench expressed reservations over their offer to make the payment in 20 years.

During the hearing, the court raised several questions over DoT’s AGR demand from PSUs.

Clarifying that the issue of dues by PSUs was not dealt with, the Bench said its verdict on AGR issue was misinterpreted.

The SC termed as ‘totally impermissible’ demand of DoT seeking several lakh crore rupees as AGR dues from PSUs.

The DoT submitted that it would file an affidavit explaining why AGR demands had been raised against the PSUs.

The Supreme Court had in January agreed to hear PSUs’ pleas on the court’s October 2019 AGR verdict which made non-telecom firms having licences for internal communications and signalling liable to pay licence fees on their entire revenue. This was despite the fact that they didn’t offer telecom services.

DoT had demanded over Rs 2,63,000 crore as AGR from non-telecom PSUs holding spectrum licence for internal communications, besides the Rs 92,000 crore that private telecom companies were supposed to pay.