The Supreme Court on Tuesday granted 10 years to telecom companies to clear their respective adjusted gross revenue (AGR) dues and also directed them to deposit the first instalment of 10 per cent by 31 March 2021.
A bench headed by Justice Arun Mishra said the instalments should be paid by 7 February of every succeeding year.
The apex court also warned the telecom companies that if there was any default, then it would accrue interest, and also non-payment would invite contempt of court proceedings against the firms.
It also said it agreed with senior advocate Harish Salve that the National Company Law Tribunal (NCLT) should first decide whether spectrum can be a subject matter of resolution proceedings.
During the hearing, the Centre said it is fine with the 20 years arrangement to recover AGR dues, as senior advocate Mukul Rohtagi appearing for Vodafone Idea accepted the demand of Rs 58,000 crore AGR dues, and insisted that the only way to pay and honour the top court judgement is to allow Vodafone a 20-year payment period. Later, however, he agreed to a 15-year time period.
Even, Airtel sought 15 years to clear the AGR dues.
The Centre had informed the top court that the Cabinet has considered the issue and decided on a 20-year period, and it has provided this relief due to the cascading effect on the economy.
The story has been published via a syndicated feed, only the headline has been changed
As you are no doubt aware, Swarajya is a media product that is directly dependent on support from its readers in the form of subscriptions. We do not have the muscle and backing of a large media conglomerate nor are we playing for the large advertisement sweep-stake.
Our business model is you and your subscription. And in challenging times like these, we need your support now more than ever.
We deliver over 10 - 15 high quality articles with expert insights and views. From 7AM in the morning to 10PM late night we operate to ensure you, the reader, get to see what is just right.
Becoming a Patron or a subscriber for as little as Rs 999/year is the best way you can support our efforts.