SC pulls up Telcos over AGR dues, reserves order on timeline for payment

The Supreme Court on Monday pulled up Vodafone Idea over the Adjusted Gross Revenue (AGR) dues and warned the telecom company of strict actions on non-compliance of its orders.

A three-judge bench headed by Justice Arun Mishra was hearing the matter pertaining to the payment around Rs 92,000 crore in AGR due to the Central government by telecom companies.

Telecom companies owe the government about Rs 1.6 lakh crore in AGR dues. 

The court reserved its order on the timeline for the payment of AGR dues and slated the next hearing in the matter on August 10. After the telecom companies sought 15 to 20 years of time to pay back the remaining AGR dues in a staggered manner, the bench, also comprising justices S Abdul Nazeer and MR Shah observed that the request was unreasonable.

Senior lawyer Mukul Rohatgi, appearing for Vodafone Idea, submitted that it has filed balance sheets and tax details of a decade, after which the bench asked him how the apex court rely on the company to pay the AGR dues if it has been running in losses for decades.

"I said, humbly that the Supreme Court order should be honoured. If the verdict can`t be honoured in one stroke, it should be in parts," Rohatgi said.

Mehta also added that the liabilities of Airtel are Rs 23,980 crore and AGR dues of Vodafone Idea are Rs 58,254 crore.

Refusing to hear arguments for reassessment, Justice Arun Mishra warned lawyers of imposing "exemplary costs on telecom companies" and said that the telecom companies` lawyers are wasting their own time and that of the court.

"We can impose heavy penalty and cost on you. Why you people are arguing for this now," Justice Arun Mishra said.

Bharti Airtel lawyer Abhishek Manu Singhvi said that the company`s remaining liability is only Rs 30 billion, to which, the judge said, "you are disputing liability of over Rs 200 billion. We won`t permit Bharti Airtel to recalculate dues."

Mohan Parasaran, one of the lawyers for Tata, pleaded to pay the amount over a period of 15-20 years. Justice Shah said it is unreasonable.

"Please tell us a reasonable time frame. 15-20 years is not the answer. Be reasonable and one type of security can be there. Our country`s revenue should be secured. You all have to be reasonable with your prayers. You are virtually dragging us to a corner," Justice Shah observed.

Mukul Rohatgi, with folded hands, prayed before the apex court to grant 15 years time to pay the rest of the amount. Singhvi also said that Bharti Airtel will also pay the rest of the amount over a period of 15 years. 

The court said it will not hear "even for a second" arguments on re-assessment of AGR related dues of telecom companies.

When the issue of re-calculation of the dues was raised, the bench shot back: "We will not hear arguments for re-assessment (of AGR related dues) even for a second."

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