On Tuesday, the Supreme Court allowed telecommunications companies to pay their adjusted gross income (AGR) installments in a staggered manner over 10 years. The Supreme Court court led by Judge Arun Mishra and made up of S Abdul Nazeer and MR Shah also ordered telecommunications companies to pay 10 percent of the fees by March 31, 2021. The central government had proposed a payment term of 20 years.
The higher court said that the 10-year term for the payment of AGR fees will start from April 1, 2021 and payments must be made in installments until March 31, 2031. Telecommunications companies must pay their fees before of February 7 of each. year and non-payment of fees will attract contempt of court.
The Supreme Court ordered the CEOs of the telecommunications companies to provide personal guarantees within four weeks to comply with the court’s instructions and dismissed the contempt cases against the telecommunications companies.
During the hearings, Tata Telecom had told the court that a window of at least 7-10 years would be required for the payment of fees, while Vodafone-Idea and Bharti Airtel had suggested payment over the course of 15 years. However, the Department of Telecommunications (DoT) adhered to the Union Cabinet’s payment proposal within 20 years.
On July 20, the three-judge court had reserved its order on the schedule for the staggered payment of fees and addressed the issue of spectrum licenses held by companies.
The Supreme Court also said that the issue of the sale of spectrum by telecommunications companies facing insolvency proceedings will be resolved by the National Court of Company Law.
India’s high court approved a 10-year payment plan for telecommunications companies to settle combined overdue fees worth Rs 1.4 trillion ($ 19 billion), a ruling that may prevent Vodafone from collapsing. Idea Ltd.
The Supreme Court on Tuesday rejected the 20-year payment term proposed by Prime Minister Narendra Modi’s administration and endorsed by telecommunications companies, but allowed the federal government to collect the amount in installments.
The ruling should come as a relief to Bharti Airtel and Vodafone Idea, which have been struggling with mounting losses. Kumar Mangalam Birla, president of Vodafone Idea, had warned in December that the company was heading for insolvency.
Telecoms shares were traded mixed following the AGR verdict. Bharti Airtel, RCom saw a slight rally, while Vodafone Idea sank 15 percent on the BSE.
.
