Big Setback To Airtel, Vodafone As Supreme Court Rejects Curative Plea Against AGR Dues

Telcos moved Supreme Court claiming that there were multiple errors in the computation amounting to over Rs 92000 crores.

The Supreme Court rejected a petition filed by the telecom companies including Vodafone and Airtel seeking a re-computation of adjusted gross revenues (AGRs)

Source : PTI

The Supreme Court on Wednesday rejected a petition filed by the telecom companies including Vodafone and Airtel seeking a re-computation of adjusted gross revenues (AGRs), amid a long-standing dispute over payment of dues to the government. The revenue-sharing between telecos and the government is based on the AGR.

The Centre receives money for allotting licences and spectrum usage, which is based in AGR. The government's share is calculated as a percentage of the AGR. This amounts to three to five per cent in spectrum usage fees and eight per cent as licensing fees.

The top court in the latest order has dismissed curative petitions filed by Vodafone Idea, Bharti Airtel and Tate Teleservices against a 2020 ruling of the apex court regarding dues pending for over a 10-year period.

A bench of CJI DY Chandrachud, Sanjiv Khanna and BR Gavai ruled that no ground was made out to exercise curative jurisdiction for its verdict in Rupa Ashok Hurra v. Ashok Hurra.

On September 2020, the top court directed telecom companies to pay their AGR dues. The court held that  there would be no revaluation of AGR dues. And if telcos defaulted, they would have to face interest, penalties, and contempt of court charges.

In 2021, the Supreme Court dismissed a plea seeking corrections in the AGR dues demand by telecom companies. They claimed that there were multiple errors in the computation amounting to over Rs 92000 crores.

In 2023, telecos filed a curative petitions against the 2020 decision of the Supreme Court, contending that the Department of Telecommunications (DoT) committed grave errors in computing the final demand. Today, the Supreme Court has rejected this curative plea, which means that the telecom companies will have to pay dues worth Rs 92000 crores.