INDUSTRY

Supreme Court quashes telecom companies’ plea seeking waiver of AGR dues

The Supreme Court has dismissed the pleas of telecom companies Vodafone Idea, Airtel and Tata Teleservices seeking waiver of adjusted gross revenue (AGR) dues.
A bench comprising Justices J B Pardiwala and R Mahadevan called the pleas “misconceived”.
“We are really shocked by these petitions which have come before us. It is not expected of a multinational company. We will dismiss it,” the bench told senior advocate Mukul Rohatgi, appearing for Vodafone Idea.
The top court refused to come in the way of the government wanting to help the telecom companies.
According to their petitions, Bharti Airtel and Bharti Hexacom sought waiver of Rs 34,745 crore in AGR-related dues, while Vodafone Idea wanted a waiver of Rs 45,457 crore in dues.
Mr Rohatgi had previously said that the survival of petitioner Vodafone Idea was crucial for maintaining competition in the telecom sector.
The Centre holds a 49 per cent stake in the company following a recent equity conversion of interest dues, he had added.
Vodafone Idea had sought from the court appropriate directions to the Centre to “act fairly and in public interest” and not insist on the payment of interest, penalty and interest on penalty on AGR dues”.
Bharti Airtel had asked for relief in AGR dues on an “equitable basis”.
In its petition, Bharti Airtel and its subsidiary Bharti Hexacom had requested a waiver of Rs 34,745 crore in dues related to interest and penalties.

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