Petition of telecom companies seeking improvement in AGR calculation dismissed
In a major setback to telcos, the Supreme Court on Friday dismissed their plea to correct alleged errors in the Adjusted Gross Revenue (AGR) calculation. A bench headed by Justice L Nageswara Rao said all the applications were dismissed. On Monday, the top court had already said that it would pass its order on applications filed by Vodafone Idea, Bharti Airtel and Tata Tele Services Ltd. The companies had alleged arithmetical errors in computing the AGR dues payable by them.
The apex court, citing an earlier order in the case, had clearly pointed out the order that no revaluation of dues relating to AGR can be done. Telecom companies submitted that arithmetic errors can be corrected and there are cases of duplication of entries.
Senior advocate Mukul Rohatgi, representing Vodafone Idea, submitted that they are not blaming the Department of Telecommunications (DoT) for this, these are arithmetical entries. Rohatgi said that they want to bring these errors to the notice of the concerned department for rectification.
The bench reiterated that the apex court’s order had made it clear that there could be no re-evaluation.
Rohatgi replied that the figures were not cast in stone. The tribunals do not have the power to review, but they can correct arithmetic errors, he said. They submitted that they were not seeking extension of time.
Senior Advocate Arvind Datar, representing Tata Tele Services Ltd, submitted that the errors in the calculations can be rectified.
Solicitor General Tushar Mehta, representing the Centre, submitted that he has not received any direction from DoT to allow rectification of errors.
The bench had said that not only once, but two-three times it has said that the demand for AGR cannot be recalculated.
Senior advocate A.M., representing Airtel. Singhvi said there are cases of duplication and payment too, but there is no account of it. He submitted, I do not want to pay thousands of crores because of these errors.
Mehta said he can take instructions on this within two days. Mehta said, “It can be a bit dangerous for me to make a statement without instructions.
In September last year, the apex court had given 10 years to telecom companies, which were struggling to pay Rs 93,520 crore in outstanding AGR dues to the government.
The top court had said that telecom operators will have to pay 10 per cent of the total dues sought by the DoT by March 31, 2021. The bench had said that the balance amount is to be paid in annual installments commencing from April 1, 2021, to March 31, 2031.
