AGR dues: SC asks Telecoms to show books of accounts

The Supreme Court on Thursday asked the Telecom companies to file their books of accounts and all financial statements for the period of last ten years, as they were saddled with Rs 1.47 lakh crore dues as adjusted gross revenue, including licence fees, spectrum uses charges, interest and penalties.

A bench of Justices Arun Mishra, S Abdul Nazeer and M R Shah told the counsel representing various Telecom majors namely Airtel, Vodafone-Idea and Tata Teleservices that they must show bona fide accounts and deposit some money for carrying out public welfare activities during this period of COVID-19 pandemic.

The court noted that the Telecom sector is the only industry that is making money.

"We want all the parties to come up and offer a reasonable plan for payment that can be worked out. You must deposit some amount," the bench said.

Meanwhile, Solicitor General Tushar Mehta, appearing for the Department of Telecom, said the government has decided to withdraw 96 per cent of Rs 4 lakh crore of AGR dues raised against non-telecom public sector undertakings, made against them following the October 24, 2019 judgement of the apex court.

During the hearing, senior advocate A M Singhvi for Bharti Airtel said that out of the Rs 21,000 crore, it has already paid over Rs 18,000 crore. He said the DoT can encash the bank guarantee, given in excess of demand, if Airtel defaults in payment of remaining dues.

Senior advocate Mukul Rohatgi for Vodafone-Idea said AGR payment of Rs 7000 crore has been paid. The company has suffered loss of Rs one lakh crore. It is already in precarious condition and is not in position to furnish any fresh bank guarantee.

Senior advocate Arvind Datar for Tata said that the company has, so far, cleared Rs 36,504 crore. He said furnishing a fresh bank guarantee would have adverse impact on investment in the sector.

The court posted for consideration in July the matter, wherein, the DoT has sought permission to give a window of 20 years to clear the AGR dues.