Thu Sep 19 07:23:25 UTC 2024: ## Supreme Court Rejects Telecom Companies’ Appeal to Recalculate AGR Dues
The Supreme Court of India on Thursday dismissed a plea from telecom giants Vodafone Idea and Bharti Airtel seeking a recalculation of the adjusted gross revenue (AGR) dues they owe the government. The court’s decision upholds its earlier ruling from 2021, which determined that only revenue generated from core telecommunications services should be considered for calculating AGR.
Shares of Vodafone Idea and Indus Towers plunged by 15% each following the announcement, while Bharti Airtel briefly dipped into negative territory. The telecom companies had argued that the Department of Telecommunications made significant errors in calculating AGR dues, leading to inflated liabilities.
The government, however, maintained its position that non-core revenue, including income from rent and land sales, should be included in AGR calculations.
This latest decision signifies a major setback for telecom companies struggling with substantial debts. The AGR dues have been a source of significant financial strain for the industry, prompting concerns about the viability of some operators.
First Piper 