Chart  plan  to  recover  AGR  dues: Apex Court

On Monday, the Apex Court directed the Govt to prepare a plan to recover adjusted gross revenue (AGR)-related dues from bankrupt telecom operators, including Reliance Communications Ltd (RCom), Aircel Group & Videocon Communications Ltd.

While observing that recovery of dues may not be possible from telcos undergoing insolvency, the Supreme Court asked the Govt whether spectrum can be sold under the Insolvency & Bankruptcy Code (IBC). The case has been adjourned to Aug 14.

However, the Court didn't mention the order reserved on the staggered payment of dues by Vodafone Idea Ltd, Bharti Airtel Ltd & Tata Teleservices. Both Vodafone & Airtel have sought 15 years to clear the dues, while Tata Teleservices wants 7-10 years. However, recovery of the dues face a major hurdle. The department of telecom (DoT) is classified as an operational creditor, RCom said in its affidavit to the Supreme Court. This would mean DoT will be pushed lower down the pecking order in trying to recover its dues under insolvency proceedings, as financial creditors are prioritised under these proceedings. For instance, the winning bidder for RCom’s spectrum, real estate, enterprise & data centre business UV Asset Reconstruction Co., has offered ₹14,000 crore for these assets.

DoT may recover next to nothing on its outstanding dues of ₹25,199 crore from RCom if this resolution plan is approved. 

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