SC grants Telcoms 10 years time to clear dues
Michael (The Jaihind Express Web Desk)
The Supreme Court on Tuesday Supreme Court gave the telecom companies 10 years to repay Adjusted Gross Revenue (AGR) dues which run into about Rs 1.6 lakh crore by telecom companies.
While reducing the time period, the bench headed by Justice Arun Mishra issued the following directions: The telecom firms will have to pay 10 percent of dues by 2021 due to Covid-19 and the rest can be paid in installments by March 31, 2031.
In the event of default, the company will be punishable for contempt of court, the bench said.
On the point as to whether the spectrum can be sold by the telecom companies facing proceedings under the Insolvency and Bankruptcy Code (IBC), the bench asked the National Company Law Tribunal (NCLT) to decide whether spectrum can be the subject matter of resolution process.
The top court had in October 2019 delivered the verdict on the AGR issue for calculating government dues of telecom companies, such as Vodafone Idea, Bharti Airtel and Tata Teleservices, as licence fee and spectrum usage charges.
Later, the Department of Telecom had in March this year moved a plea seeking permission for staggered payment in a time period of nearly 20 years for the telecom companies.
With input from agencies