You are here: Home » Companies » News
Business Standard

Telecom AGR dues case: The story so far

The AGR issue is a 14-year-old case that had mobile operators locked in a legal battle with the government over the definition of of the term

Topics
Adjusted gross revenue | Vodafone Idea | Bharti Airtel

Sukanya Roy  |  New Delhi 

The today directed the telecom to file affidavits giving details about they will pay the (AGR)-related dues dues to the government. The road map would have to include a deadline by which the staggered payment would have to be made, along with submission of securities.

What exactly is AGR?

AGR is the basis on which the calculates levies payable by operators. Basically, it is a metric calculated from a company's gross revenues and is used to determine the levy that be imposed on the teleincome.

The AGR issue is a 14-year-old case that had mobile operators locked in a legal battle with the government over the definition of of the term. While the telecom providers insisted that AGR should only include revenue from core operations and that other sources should be excluded, the (DoT) maintained that AGR also embraced non-core revenue from the sale of assets, interest on deposits, rental income and such like.

Ending this legal tussle, the on October 24, last year rejected telcos' definition of (AGR) and held that telecom service providers have to now pay fines and penalties on the unpaid fees, other than termination fee and roaming charges.

The apex court allowed the Centre to recover over Rs 92,000 crore from the already financially stressed telecom industry within three months. The order came as a major blow to the two incumbent operators, and Bharti Airtel, forcing them to hike tariffs.

In February, the slammed mobile carriers for non-payment of dues and threatened them with contempt proceedings if they didn’t pay up by March 17.

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

How much do the telcos owe?

Bharti Airtel's total due is at Rs 43,980 crore. The company has paid Rs 18,004 crore so far; the balance to be paid is Rs 25,976 crore. Vodafone Idea's dues are at Rs 58,254 crore. The company has paid Rs 6,354 crore; the balance left Rs 51,400 crore.Tata Group dues for Tata Telecom Services Ltd (TTSL) are pegged at Rs 16,798 crore. It has paid Rs 4,197 crore; balance is Rs 12,601 crore

Now, the two companies- and Vodafone Idea, sought some time to make the balance AGR payments, agreeing to have their licences cancelled in case they failed to meet the deadline. Justice Mishra sais the court can't grant an extension based on a 'gentleman's promise'. pleaded that it does not have enough money to pay and should be given some time. It added that its licence could be cancelled if it failed to pay up.

Listen to the podcast for more

MONTHLY STAR

Business Standard Digital

Business Standard Digital Monthly Subscription
149.00  
subscribe
Complete access to the premium product
Convenient - Pay as you go
Pay using Master/Visa Credit Card & ICICI VISA Debit Card
Auto renewed (subject to your card issuer's permission)
Cancel any time in the future
Requires personal information

What you get?

ON BUSINESS STANDARD DIGITAL

  • Unlimited access to all the content on any device through browser or app.
  • Exclusive content, features, opinions and comment – hand-picked by our editors, just for you.
  • Pick 5 of your favourite companies. Get a daily email with all the news updates on them.
  • Track the industry of your choice with a daily newsletter specific to that industry.
  • Stay on top of your investments. Track stock prices in your portfolio.
  • 18 years of archival data.

NOTE :

  • The product is a monthly auto renewal product.
  • Cancellation Policy: You can cancel any time in the future without assigning any reasons, but 48 hours prior to your card being charged for renewal. We do not offer any refunds.
  • To cancel, communicate from your registered email id and send the email with the cancellation request to assist@bsmail.in. Include your contact number for speedy action. Requests mailed to any other ID will not be acknowledged or actioned upon.

SMART MONTHLY

Business Standard Digital

Business Standard Digital - 12 Months
1499.00
subscribe
Get 12 months of Business Standard digital access
Single Seamless Sign-up to Business Standard Digital
Convenient - Once a year payment
Pay using an instrument of your choice - Credit/Debit Cards, Net Banking, Payment Wallets accepted
Exclusive Invite to select Business Standard events

What you get

ON BUSINESS STANDARD DIGITAL

  • Unlimited access to all content on any device through browser or app.
  • Exclusive content, features, opinions and comment - hand-picked by our editors, just for you.
  • Pick 5 of your favourite companies. Get a daily email with all the news updates on them.
  • Track the industry of your choice with a daily newsletter specific to that industry.
  • Stay on top of your investments. Track stock prices in your portfolio.

NOTE :

  • This product is a monthly auto renewal product.
  • Cancellation Policy: You can cancel any time in the future without assigning any reasons, but 48 hours prior to your card being charged for renewal. We do not offer any refunds.
  • To cancel, communicate from your registered email id and send the mail with the request to assist@bsmail.in. Include your contact number for easy reference. Requests mailed to any other ID will not be acknowledged or actioned upon.

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Thu, June 11 2020. 19:55 IST
RECOMMENDED FOR YOU