Telecom AGR dues: Supreme Court dismisses curative pleas on computation ‘errors’

Telecom AGR dues: Supreme Court dismisses curative pleas on computation ‘errors’



A view of the Supreme Courtroom of India. File
| Photograph Credit score: The Hindu

The Supreme Courtroom has dismissed healing petitions filed by telecom service suppliers, together with Bharti Airtel and Vodafone Thought, in opposition to the court docket’s October 2019 judgment upholding the Division of Telecom’s (DoT) transfer to get better adjusted gross income (AGR) of about ₹92,000 crore from them.

The healing petitions have been dismissed in chambers by a Bench of Chief Justice D.Y. Chandrachud, Justices Sanjiv Khanna and B.R. Gavai on August 30. The order was obtainable within the public area on Thursday.

“Now we have gone by means of the healing petitions and the linked paperwork. In our opinion, no case is made out… The healing petitions are dismissed,” the Bench recorded in its order.

The October 2019 verdict had mentioned the telecom sector had lengthy reaped the fruits of the Centre’s liberalised mode of cost by income sharing regime with the federal government. Beneath this mechanism, the operators needed to pay a sure licensing charge and spectrum utilization charge to the DoT. The Division calculated the charge as a proportion of the AGR. The dispute between the non-public telecom sector and the federal government over the calculation of the AGR spanned almost twenty years.

‘Benefited immensely’

“The sector has benefited immensely below the scheme as obvious from the gross income development from 2004 to 2015… The telecom service suppliers despite the monetary advantages of the package deal began to make sure that they don’t pay the licence charge to the general public exchequer primarily based on an agreed AGR,” the Supreme Courtroom had noticed in its 153-page judgment in 2019.

The court docket had dismissed the telecom service suppliers’ (TSP) objection to the federal government’s formulation of AGR.

The judgment had mentioned the gross income could be inclusive of set up fees, late charges, sale proceeds of handsets (or every other terminal gear and many others.), income on account of curiosity, dividend, value-­added providers, supplementary providers, entry or interconnection fees, roaming fees, income from permissible sharing of infrastructure and every other miscellaneous income, with none set­-off for associated merchandise of expense, and many others.

Following the dismissal of a evaluate plea, the TSPs had moved a healing petition alleging errors within the computation of the AGR dues.

This was regardless of a July 2020 order which had mentioned that functions filed by the telecom majors to “right” math errors, which at “first blush” look “innocuous”, was a roundabout solution to recompute their AGR money owed — a path expressly forbidden by the Supreme Courtroom in an earlier order

The July 2020 order had made it clear that “no dispute might be raised in respect of AGR dues that had been arrived at on the idea of calculations made by the Union of India”.

“No telecom operator shall elevate any dispute in respect of the demand raised by the Division of Telecommunications pertaining to AGR dues, primarily based on the judgment of this court docket of October 24, 2019. It was additionally held that there can’t be any reassessment,” the Supreme Courtroom had reiterated.

In September 2020, the apex court docket had ordered that the annual 10% instalments of the TSPs in direction of their AGR dues would begin from April 1, 2021 as much as March 31, 2031.

CJI agrees to consider listing plea by Vodafone-Idea to correct computational errors in Adjusted Gross Revenue dues





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