Supreme Court Rejects Bharti Airtel & VIL’s Review Plea on AGR

New Delhi, January 17, 2020:

Telecom giants Airtel and Vodafone Idea (VIL) will have to pay nearly Rs 1.02 lakh crore as statutory payment to the government by January 23 after the Supreme Court on Thursday rejected the telcos' plea to review its October 24 Adjusted Gross Revenue (AGR) ruling.

However, Airtel and Vodafone Idea (VIL) said they could file curative petitions.

VIL in a statement said, “The company is exploring further options, including the filing of a curative petition.”While Airtel said it was mulling a curative petition over the AGR order.

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Tata Teleservices, which had also filed the review petition didn't comment on its future course of action. Cellular Operators Association of India (COAI), the industry association, termed the dismissal of petitions as the last straw on the sector’s back reeling under financial stress.

Expressing that it respects the Supreme Court’s order, COAI Director General Rajan Mathews said, “The sector is facing 29-32 per cent taxes and levies, which are the highest globally.”

Meanwhile, Airtel said, “The industry needs to continue to invest in expanding networks, acquiring spectrum and introducing new technologies, like 5G. The money required to pay -- punitive interest, penalty, and interest on penalty -- which forms nearly 75 per cent of AGR dues, would have better served India's digital mission.”

Reportedly, VIL and Airtel have to pay Rs 53,039 crore and Rs 35,586 crore, respectively.

Tata Teleservices, which sold its consumer mobility business to Airtel but the deal is yet to get the Department of Telecom’s (DoT) nod, faces Rs 13,823 crore in dues. Some 15 telcos, including the three, need to pay over Rs 1.47 lakh crore to the government as was disclosed to Parliament by Telecom Minister Ravi Shankar Prasad.

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