In a huge relief to Telecom compnaies Vodafone Idea, Bharti Airtel, Tata Teleservices and others, the Supreme Court on Tuesday granted them 10 years' time to pay AGR (adjusted gross revenue) dues of over Rs 1.47 crore in "the interest of the economy and the consumers".
The court made it clear that there should not be any re-assessment or dispute over the demand raised by the Union government.
A bench of Justices Arun Mishra, S Abdul Nazeer and M R Shah said that it is to be ensured that the dues are paid in total.
The concession is granted only on the condition that the dues should be paid punctually within the time stipulated by this court. Even a single default will attract the dues along with interest, penalty and interest on penalty at the rate specified in the agreement, the court said.
It asked the National Company Law Tribunal to decide the issue of sale of spectrum held by several companies such as RCom and others, which faced insolvency proceedings.
In its judgement, the court granted significant concession to the companies, in terms of time to clear the dues as original direction issued in October, 2019 provided just three months for it, considering "financial stress and the banking sector's involvement".
The court said the first installment of 10% of AGR dues must be paid by March 31, 2021 and remaining in equal installments in subsequent years. "Various companies through Managing Director/Chairman or other authorised officer, to furnish an undertaking within four weeks, to make payment of arrears as per the order," it said.
The court said the Telecom companies will have to face contempt proceedings and also have to pay penalty in case of default in payment of annual installment.
The Centre has sought 20 years long window for the Telecom companies to clear over Rs 1.47 lakh crore dues saying such a decision was taken in view of its cascading effect on economy, loss of direct and indirect employment, adverse impact on digital economy and to prevent the sector from going haywire. The cash-strapped companies have supported the Union government's move, claiming they would be forced to wind up if no relief was provided to them.
After the October 24, 2019 Supreme Court judgement, about 15 Telecom companies were asked to clear more than Rs 1.47 lakh crore, including licence fees, spectrum uses charges, interest and penalties.
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