SC: Won't allow 'rectification' of AGR demand; junk pleas by Vodafone Idea, Bharti Airtel

In a setback for Vodafone Idea, Bharti Airtel and Tata Teleservices, the Supreme Court has rejected their petitions for rectification of AGR (Adjusted Gross Revenue) demands by DoT (Department of Telecommunications). With the top court reiterating its last year's order which barred any recalcuation of AGR dues, telecom companies won't get a chance to reduce their AGR payout based on the clerical and arithmetic errors they had claimed in DoT's calculation.

The order implies that telecom companies will have to pay AGR dues as per DoT's calculation, not their self-assessment. Telecom companies are slated to pay Rs. 22,500 crores as regulatory payments in the next 6 to 9 months. They have a legal option to contest the top court order by filing a review petition, but review pleas usually have a rare chance of succeeding.

Vodafone Idea will have to pay a total of Rs. 58,400 crores as AGR dues, out of which Rs. 7,854 crores have already been paid. Bharti Airtel has paid Rs. 18,000 crores out of its total AGR liability of Rs. 43,980 crores, while Tata Teleservices has paid Rs. 4,197 crores out of its total AGR liability of Rs. 16,789 crores.

The 3-judge bench of Justice LN Rao, Justice SA Nazeer and Justice MR Shah will continue hearing the AGR case where they will consider DoT's reply on compliance by telecom companies with the payment of instalments of the pending dues.

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