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Wednesday, September 23, 2020

Bharti Airtel, Vi may meet DoT, seek clarifications on AGR payment quantum

On September 1, the Supreme Court, in its final judgment on the AGR issue, said telcos could pay their AGR dues over the next 10 years and that they would have to pay 10 per cent of the dues by March 31, 2021.

Written by Aashish Aryan | New Delhi | September 17, 2020 1:33:28 am
AGR case, AGR case Supreme Court, AGR case verdict Supreme Court, Supreme Court AGR case verdict, India news, Indian ExpressOn September 1, the Supreme Court, in its final judgment on the AGR issue, said telcos could pay their AGR dues over the next 10 years and that they would have to pay 10 per cent of the dues by March 31, 2021.

Bharti Airtel and Vodafone Idea are likely meet officials from the Department of Telecommunications (DoT) soon and tell them that since they fulfil the Supreme Court’s condition of payment of 10 per cent of adjusted gross revenue (AGR) by March 31, 2021, they would be liable pay the next AGR instalment only by March 2022, according to sources.

“The understanding at our end from the reading of the judgment is that 10 years has been given to us for making the entire dues payment. Out of this, more than 10 per cent of the amount we have already paid. We do not have liabilities right now to pay until the next installment in March 2022. That is the understanding we have,” a senior executive at Vodafone Idea, now re-branded as Vi, said.

Sources at Bharti Airtel, meanwhile, said the company was likely to tell the DoT that since they had already paid Rs 18,004 crore or nearly 40 per cent of its total AGR obligation, they have no payment obligations for financial year 2021, 2022 and 2023. “That is our understanding from a plain reading of the judgment. Now only the DoT can clarify whether this is something we can do or not,” an executive at Bharti Airtel said.

On September 1, the Supreme Court, in its final judgment on the AGR issue, said telcos could pay their AGR dues over the next 10 years and that they would have to pay 10 per cent of the dues by March 31, 2021.

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