A bench comprising Chief Justice D Y Chandrachud and Justices Sanjiv Khanna and B R Gavai additionally rejected the plea of the telcos looking for to record the healing petitions for open court docket listening to.
The plea’s dismissal means the businesses can have no choice however to cough up the cash by March 31, 2031, because the apex court docket had earlier allowed for the fee to be remodeled 10 years, beginning March 2021.
In July 2021, too, SC had dismissed a plea by the telcos looking for a “correction of errors”. The court docket had held that the demand raised by the DoT with respect to AGR dues could be remaining. It additionally mentioned that telecom corporations shall not elevate any dispute and there shall not be any reassessment.
AGR dues: Vi must pay Rs 70k crore, Airtel almost Rs 30k crore
Final Oct, the highest court docket had taken observe of submissions of among the telecom corporations looking for itemizing of their pleas on the AGR due subject. The telcos had referred to alleged “errors within the arithmetic calculation” for arriving on the AGR-related dues by the DoT.
“Software for itemizing the healing petitions in open court docket is rejected. We’ve got gone via the healing petitions and the linked paperwork. In our opinion, no case is made out throughout the parameters indicated within the choice of this court docket in Rupa Ashok Hurra v Ashok Hurra. The healing petitions are dismissed,” the bench mentioned in an order dated Aug 30, which was uploaded on Thursday.
The transfer will imply that Vodafone Concept, already crippled by losses, should cough up almost Rs 70,000 crore. The corporate, which raised funds lately, has debt of over Rs 2.3 lakh crore, together with AGR and statutory funds. The apex court docket’s order despatched Vi inventory crashing by as a lot as 19% on BSE, closing at Rs 10.44.
Sources mentioned that Vodafone Concept administration is “not unduly anxious” by the choice, particularly as “not one of the firm’s revival plans hinged on the result” of the healing petition. “The corporate has simply raised Rs 20,000 crore, primarily via follow-on public providing (FPO) and a few promoter funding. It’s within the strategy of deploying the funds for community growth. Concurrently, the steps for elevating debt stays on target. There’s not a lot must panic,” a supply mentioned, requesting anonymity.
Airtel has estimated AGR dues of below Rs 30,000 crore, however remained unscathed by the ruling with its shares gaining 1% to Rs 1,672 as its higher monetary place is seen to assist it overcome recent strain. Reliance Jio’s late entry has helped it keep away from any main excellent dues.
Based on the revenue-sharing mannequin launched by the Centre in 1999, telcos should pay a sure portion of their AGR as licence charge. Initially, 15% AGR was mounted as licence charge below revenue-sharing, which was diminished to 13% after which to eight% in 2013.
The contentious subject of AGR dues arose when the apex court docket in Oct 2019 dismissed the plea of telecom corporations that AGR ought to embody solely core telecom companies and exclude income from different sources. SC had accepted the Centre’s competition that AGR ought to embody dividends, handset gross sales, hire and revenue from the sale of scrap, aside from income from companies.
