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This is an archive article published on September 19, 2024

Supreme Court rejects telecom companies’ plea for AGR re-computation

The Supreme Court developed the concept of curative petition in the Hurra case to provide an opportunity for those whose grievance is not addressed in the review petition to approach the court one more time.

A bench of Chief Justice of India D Y Chandrachud and Justices Sanjiv Khanna and B R Gavai, which heard their plea, rejected the prayer to hear it in open court. Curative petitions are usually taken up by judges inside their chambers. SCA bench of Chief Justice of India D Y Chandrachud and Justices Sanjiv Khanna and B R Gavai, which heard their plea, rejected the prayer to hear it in open court. Curative petitions are usually taken up by judges inside their chambers. (File)

The Supreme Court has dismissed petitions filed by telecom service providers companies against its October 24, 2019, order directing them to pay Adjusted Gross Revenue (AGR) of about `92,000 crore to the Department of Telecom (DoT).

A bench of Chief Justice of India D Y Chandrachud and Justices Sanjiv Khanna and B R Gavai that heard the plea by providers, including Bharti Airtel and Vodafone Idea, rejected the prayer to hear it in open court. Curative petitions are usually taken up by judges in their chambers.

In the August 30 order, which was made available on Thursday, the court said, “We have gone through the Curative Petitions and the connected documents. In our opinion, no case is made out within the parameters indicated in the decision of this Court in Rupa Ashok Hurra vs Ashok Hurra”.

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The Supreme Court developed the concept of curative petition in the Hurra case to provide an opportunity for those whose grievance is not addressed in the review petition to approach the court one more time.

Allowing a DoT appeal, the Supreme Court on October 24, 2019, paved the way for the recovery of the AGR dues amounting to about `1.6 lakh crore from the telecom companies, upholding DoT’s stand on what constitutes AGR as provided in clause 19.1 of the telecom licence agreement with the service providers.

Though the Centre urged the court to allow the telecom companies, which pleaded financial difficulties to pay the dues over 20 years, the SC by order dated September 1, 2020, permitted them to pay the money over 10 years, starting April 1, 2021, with 10 per cent payment to be made by March 31 every year.

In an order dated July 23, 2021, the Supreme Court also dismissed applications by telecom companies seeking correction of what they claimed were “arithmetic errors” in the calculation of the AGR.

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After their review plea against the October 2019 judgement was dismissed, they filed the curative petition but failed to get any relief.

The question of AGR has been a point of dispute since 2003 with the Telecom Disputes Settlement and Appellate Tribunal (TDSAT) ruling that some of the heads of revenue would not fall under AGR.

However, the top court said that it had in a 2011 judgment ruled that the Telecom Regulatory Authority of India (TRAI) and the Tribunal do not have the jurisdiction to exclude from its purview, certain items of revenue, which were included in the definition of AGR. “TRAI and Tribunal had no jurisdiction to decide on the validity of the definition AGR in the licence agreement,” the SC had said.

Ananthakrishnan G. is a Senior Assistant Editor with The Indian Express. He has been in the field for over 23 years, kicking off his journalism career as a freelancer in the late nineties with bylines in The Hindu. A graduate in law, he practised in the District judiciary in Kerala for about two years before switching to journalism. His first permanent assignment was with The Press Trust of India in Delhi where he was assigned to cover the lower courts and various commissions of inquiry. He reported from the Delhi High Court and the Supreme Court of India during his first stint with The Indian Express in 2005-2006. Currently, in his second stint with The Indian Express, he reports from the Supreme Court and writes on topics related to law and the administration of justice. Legal reporting is his forte though he has extensive experience in political and community reporting too, having spent a decade as Kerala state correspondent, The Times of India and The Telegraph. He is a stickler for facts and has several impactful stories to his credit. ... Read More

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