Last updated: 20 Jul, 2021 | 11:46 am
AGR case highlights - All you need to know
AGR, the beginning - The government in 1999 announced the National Telecom Policy, which gave the telecom companies an option to migrate from fixed license fees to revenue sharing fees. The fixed license fee was high, and companies mostly defaulted it. As per the new policy, 15 percent AGR (Adjusted Gross Revenue) was fixed as a license fee under the revenue-sharing model. The percentage was reduced later to 13 percent and then 8 percent in 2013.
The AGR issue - Telcos owe Rs 1.47 lakh crore to DoT. It includes Rs 92,600 crore as license fee and Rs 55,100 crore as spectrum usage charges. Of the total amount, Vodafone Idea owes a maximum of Rs 53,000 crore. The case is going on between telecom companies and DoT over the correct figure of AGR dues since 2003.
The latest verdict - The Supreme Court again heard the 18-year-old AGR dispute between the Department of Telecommunications (DoT) and telecom companies on July 19th. The apex court has reserved its order to not recommend any recomputation of AGR dues sought by Bharti Airtel, Vodafone Idea, and Tata Telecommunications.
Vodafone Idea's request - The company asked SC to correct the arithmetic error. The company has dues of Rs 58000 crore, and it requested SC to allow them to place their calculation in front of DoT and let them take the final call.
Bharti Airtel's request - The company has said that there is an obvious error in the computation of AGR like duplication, payments made not accounted for. DoT should look into these issues and errors. It will help Bharti Airtel save thousands of crore.
Tata Telecommunication's request - AGR has to be in accordance with the law just like any fee or tax. The judgment prohibits only re-assessment, SC has not barred rectification of calculative errors.
Solicitor General, Tushar Mehta has sought 2 days to reply on alleged arithmetic errors in DoT's calculations. He also said that he has no instructions from DoT, and it may be hazardous for him to make a statement without instructions from DoT. He said, 'Can take instructions from DoT if calculation errors can be corrected.
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