Airtel moves Supreme Court of India to lower dues as per AGR fees

Date: 2021-01-07   Author: Pankaj Singh  Category: #news

Airtel moves Supreme Court of India to lower dues as per AGR fees

Bharti Airtel has reportedly moved the Supreme Court of India seeking to lower dues that are payable as per the AGR (aggregated gross revenue) fees.

The Indian telecom company has cited that the main reason behind requesting the dues adjustment is the miscomputation of dues. According to DoT (Department of Telecommunications), the company has dues of ?43,989 crore ($6.01 billion) in total, out of which, it had already paid ?18,004 crore ($2.46 billion). In addition, the balance payment is pegged at ?25,985 crore ($3.55 billion).

Before the Supreme Court, Airtel is expected to cite the alleged miscomputation of the total payable dues by the DoT. Moreover, the company may argue that the total dues demand includes spectrum usage charges and license fee dues. However, the issues before the court were limited to the license fee dues and not the spectrum charges, making its inclusion in the total erroneous.

On 1st September 2020, the Supreme Court offered telecom firs 10 years to repay the AGR fees, putting an end to a similar conflict due to its implications on the telecommunications sector. Following this, judges in the Supreme Court namely MR Shah, S Abdul Nazeer, and Arun Mishra directed the companies to pay 10% of the AGR fees upfront.

A default is likely to invite penalty, interest, as well as contempt of court. The court will also prohibit the revaluation of the AGR dues. In October 2019, the court upheld the AGR’s expanded definition provided by the DoT, which demanded above ?1 lakh crore ($13.6 billion) from the service providers and asked these companies to repay dues within 3 months. In January 2020, various petitions made by them were also rejected.

Other telecom companies are expected to file similar petitions. Some have previously claimed that the demands from DoT are more than their self-assessment; however, their stand was rejected by the top court.

Source credit:


About Author

Pankaj Singh linkdin-boxtwitter

Pankaj Singh

Pankaj Singh Develops content for Algosonline, Market Size Forecasters, and a couple of other platforms. A Post Graduate in Management by qualification, he worked as an underwriter in the UK insurance domain before deciding to switch his field of profession. With exp...

Read More

Post Recommendents

Cheque Scanner Market 2020 Global Outlook, Research, Trends and Forecast to 2025

Author: Sachin Pashte

The Cheque Scanner Market Report renders deep perception of the key regional market status of the Cheque Scanner industry on a global level that primarily aims at core regions which comprises of continents like Europe, North America, and Asia and ...

Comprehensive report of LED Chip and Module Market Projected to Gain Significant Value by 2025

Author: Sachin Pashte

LED Chip and Module market report delivers vital data concerning the drivers, limitations & challenges, product spectrum, application scope, competitive dynamics, and impact of COVID-19 on CAGR.

Executive Summary:

HDI Market Regional Outlook, Competitive Strategies And Forecast up to 2025

Author: Sachin Pashte

HDI market to witness stellar expansion over 2020-2025. Report inclusions: COVID-19 impact, past and current trends, CAGR, revenue forecast, market segmentations, competitive arena.

Executive Summary:

The recen...