SC questions DoT's AGR demand on PSUs, says it is 'totally impermissible'

A Bench of Justices Arun Mishra, S Abdul Nazeer and M R Shah raised questions on the demand raised by the government from PSUs and said its verdict in the case had been misinterpreted

The Supreme Court on Thursday said the Department of Telecommunications' (DoT's) demand for Rs 4 trillion worth of adjusted gross revenue (AGR) dues from public-sector undertakings (PSUs) was "totally impermissible".  The court said DoT must consider withdrawing it.

A Bench of Justices Arun Mishra, S Abdul Nazeer and M R Shah raised questions on the demand raised by the government from the PSUs and said its verdict in the case was misinterpreted, as the apex court had not been dealt with the issue of their dues based on AGR.

This is wholly and totally impermissible, the bench said, while referring to the demand raised against the PSUs.

Solicitor General Tushar Mehta, appearing for DoT told the bench that it would the file the affidavit explaining as to why the AGR demands were raised against the PSUs.

The Bench also asked private telecom operators to file affidavits giving details as to how they will pay the AGR dues.
 

On May 18, the top court had lashed out at Bharti Airtel, Vodafone Idea and other mobile phone operators for self-assessing their outstanding telecom dues, saying they need to pay past dues with interest and penalty -- an estimated amount of Rs 1.6 lakh crore.

The apex court had also came down heavily on the DoT for allowing companies to re-assess what they owed to the government, and said its order -- passed on October 24, 2019 -- on revenues for calculating dues was final.