Thu Sep 19 06:05:15 UTC 2024: ## Supreme Court Rejects Telecom Companies’ Plea to Recompute AGR Dues

The Supreme Court has rejected a plea by telecom companies to re-compute their adjusted gross revenues (AGR), a key factor in determining the dues owed to the government. This decision marks a blow to Vodafone India, Bharti Airtel, and other companies embroiled in a long-standing dispute over these payments.

The companies had argued that a grave error in the Department of Telecommunications (DoT) calculations had led to an inflated figure for their AGR dues, amounting to over Rs 1 lakh crore. They claimed that the DoT had incorrectly included non-telecom revenues in the calculation, while their own calculations showed significantly lower dues.

For instance, Airtel stated that it owed Rs 13,004 crore, compared to the DoT’s figure of Rs 43,980 crore, while Vodafone’s self-calculated dues stood at Rs 21,533 crore against the DoT’s figure of Rs 58,254 crore.

The companies had also raised concerns about the financial crisis affecting the industry and the court’s imposed penalty. They had appealed for a 10-year payment period, with 10% of the total due by March 31st each year. This was in response to a 2020 order requiring immediate payment.

The Supreme Court’s 2019 ruling, which mandated payment of Rs 92,000 crore within 180 days, had already severely impacted the industry. Vodafone India and Bharti Airtel reported record losses in the aftermath.

The latest decision further complicates the situation, forcing telecom companies to face the burden of hefty AGR dues. It remains to be seen how the companies will respond to this setback and the potential impact on their future operations.

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