The Supreme Court in its judgment in the make any difference of adjusted gross profits permitted telcos to pay their exceptional dues in 10 years. Telcos can pay 10 for each cent of their dues by March 31, 2021, and the remaning instalments by seven February each 12 months.
Any default will accrue interest and non-payment will also invite contempt of court proceedings, explained the SC in its verdict. The firms have been purchased to keep adjusting bank assures alive till the time the payment is built.
On the issue of whether telcos could offer spectrum, the SC has still left the issue to the wisdom of the Countrywide Firm Law Tribunal (NCLT). There is no clarity so far on the SC’s choice on whether Reliance Jio would have to pay the dues of Reliance Communications, whose spectrum it is making use of — and whether Bharti Airtel would have to clear the dues of Aircel and Videocon for the very same rationale.
Before, soon after the leading court had rejected pleas by Vodafone Thought, Bharti Airtel, and Tata Teleservices looking for critique of the judgment which widened the definition of AGR by which include non-telecom revenues, the DoT had in March moved a plea looking for staggered payment around twenty years.
The Supreme Court finished listening to the AGR circumstance on August 24, just about a 12 months soon after its verdict on the definition of AGR.
The SC had to produce judgment on a few matters associated to telecom sector. The initial one particular becoming on the tenure for staggered payment of AGR dues.
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The 2nd was associated to the clarification on whether or not Reliance Jio had to pay the AGR dues monthly bill of RCom, and Bharti Airtel of Aircel and Videocon.
And a few, it will immediate banks on whether they can, as lenders, transfer spectrum, which is a nationwide asset, to a new buyer under IBC, with no initial getting cognizance of the dues of the governing administration. The apex court has still left this issue for the NCLT to determine,
SC in October 2019 delivered the verdict on the AGR issue for calculating governing administration dues of telecom firms these as licence price and spectrum use expenses.
