The Supreme Court delivered the verdict on the long pending and matter pertaining to the repayment of AGR dues by top-notch telecom companies on September 1.
— Business Today (@BT_India) September 1, 2020
The bench includes Justice Arun Mishra, S Abdul Nazeer and MR Shah permitted the telcos to repay AGR dues in 10-year timeline which will begin from April 11.
Stemming from The Apex Court’s 2019 Verdict that upheld the government’s calculations and predictions on adjusted gross revenue. The panel of three judges today directed telcos to repay 10% of the pending dues by March 31, 2021.
The Chairmen of the Telecom companies are also given direction to give undertakings for payments. Keeping in mind that payment will also invite interest, penalty and contempt of court.
Share market’s reaction to the AGR case new seems to be optimistic and positive as the shares of Bharti Airtel rose to as much as 6.6%. Telecom operators and the Solicitor General of India Tushar Mehta had sought more time to repay the dues citing financial stress and the impact on the economy.
The Supreme Court said, “The National Company Law Tribunal will decide whether spectrum can be sold during insolvency proceedings.”
The apex court in its Aug 14 hearing had inquired, “if companies that are using the spectrum of insolvent telecom firms, such as Aircel, Videocon Telecommunications Ltd. and Reliance Communications Ltd., can be asked to pay the pending dues on their behalf.”