New Delhi: In what comes as a massive relief for telecom operators of the country, the Supreme Court on Tuesday granted the firms a span of 10 years for paying Adjusted Gross Revenue (AGR) related dues. Telecom operators such as Vodafone Idea, Bharti Airtel, Tata Teleservices have to pay  thousands of crores worth of statutory dues after the top court's 2019 verdict that upheld government's demand on AGR. ALSO READ | 'Matter Of Shame,' Opposition Attacks Govt As India's First Quarter GDP Contracts 23.9%

However, companies will however have to pay 10 per cent of their total AGR dues by March 2021. The apex court also said that default on payment installments will invite interest, penalty and contempt of court.

A bench headed by Justice Arun Mishra held that the demand made by the DoT and the verdict delivered by the top court in the matter are final.


The bench asked the Managing Director (MDs) or Chief Executive Officer (CEOs) of telecos concerned to furnish undertaking or personal guarantee within four weeks for payment of dues.

It cautioned the telecom firms and said that failure to pay installments of AGR-related dues would incur penalty, interest and contempt of court.

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The top court said that issue of sale of spectrum by telecos facing insolvency proceedings shall be decided by the National Company Law Tribunal (NCLT).

The bench delivered its verdict on the issues, including the timeline for staggered payment of AGR-related dues amounting to about Rs 1.6 lakh crore.

As per reports, SC bench delivered the judgement on three counts: the staggered payment schedule where the Centre said it is fine with the 20 years arrangement to recover AGR dues; could spectrum be transferred or sold by companies under the IBC; and additional liabilities, if any, on Jio, and Airtel for past dues of RCom, Videocon, and Aircel.

Airtel had spectrum sharing and trading pacts with Videocon and Aircel, whereas Jio had with RCom. The verdict may clarify the additional liability, if any, for Jio and Airtel on account of past dues of RCom and Videocon, respectively.

The top court had asked the Department of Telecommunication (DoT) to share details of demand under process for raising liabilities against Airtel and Jio against the backdrop of spectrum sharing. The bench had also observed that if DoT does not provide correct position on AGR demands, then the ruling may be wrong.

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Senior advocate Harish Salve, appearing for the committee of creditors for RCom, contended before the bench that the right to use spectrum is an asset which can be sold, if the company wants to. He added that the resolution plan proposes the sale of right to use spectrum is in line with the licence trading guidelines.

Senior advocate Kapil Sibal, appearing for Airtel, contended before the bench that if the liability of past dues of Videocon were to be imposed on Airtel, why did DoT wait so long, and it should have clarified it long back.