SC orders Telcos to file audited Balance Sheets of past ten years in AGR Case

On Thursday, the Supreme Court has directed the telcos to file audited balance sheets of the past 10 years, come up with payment proposals and asked the telecom department to consider them.

The three-judge bench also noted that the DoT has withdrawn 96% of the over ₹4 lakh crore claims levied against PSUs.

Thursday's directions come on the back of telecom companies' plea to the Supreme Court to grant them a 20 year timeline to pay their AGR dues without any additional bank guarantee or personal guarantees. The apex however has asked the operators to come up with a payment proposal and asked the telecom department to look into them.

Vodafone IdeaNSE 0.00 % said it has no proposal to provide any bank guarantees as it has not made profits for several quarters .

The Supreme Court's bench headed by Justice Arun Mishra asked Vodafone Idea what securities and guarantees it can pay against AGR dues. The bench asked for personal guarantee but the telco refused .
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Senior advocate Mukul Rohatgi, representing Vodafone Idea, said that the company with its losses over several quarters has no funds to pay. The apex court asked for details of the operator's assets as well.

The telco had earlier informed the top court that licences and spectrum were the best security against dues of over Rs58,000 crore that the DoT has sought from the company.

The cash-strapped telco, which has on several occasions warned of going bust if made to pay AGR dues in one shot, has paid nearly Rs7,000 crore so far. Analysts say Airtel, which has paid up Rs18,000 crore of its Rs44,000 crore dues, though is in a better position to provide bank guarantees given that it has been raising funds and strengthening its balance sheet.

Bharti AirtelNSE -0.01 % on Thursday also refused to provide additional BGs and told SC , DoT already has Rs 10,800 crore and sought a 20 year timeline.

The bench also commented that during the COVID-19 , operators have been making money.

The next hearing in the case will be in the third week of July.
 

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