Supreme Court AGR dues hearing Highlights: Supreme Court reserved its order on the timeline of payment of adjusted gross revenue (AGR) dues by telecom companies. The next hearing will be held on August 10 on the issue of companies which have gone into liquidation. Supreme Court said that it has heard parties on liability and timeframe for making the payment. During the AGR case hearing in Supreme Court, Justice Arun Mishra said, “You all are wasting your and our time and energy, what kind of exercise you people are doing. Why you people are arguing for this now? We will impose exemplary costs on telecom companies.” Mukul Rohtagi who represented Vodafone idea pleaded the court with folded hands and said, “Please give 15 years to pay the rest of the amount.” Vodafone Idea, Bharti Airtel scaled down their demand from 20-year timeline to 15 years. The hearing was scheduled to start at 2 PM, but it was delayed. A three-judge bench of Justices Arun Mishra, S Abdul Nazeer and MR Shah heard the case. The Supreme Court in its last hearing held on June 18, asked the telecom companies to make a minimum payment to show bonafides, provide a roadmap of payments (payment plan) if allowed to stagger payments and provide books of accounts for the last decade for assessment.
As per the Department of Telecommunications, out of Bharti Airtel’s nearly Rs 43,000 crore total dues, the company has paid nearly Rs 18,000 crore. On the other hand, along with the Rs 1,000 crore payment made on Saturday and Rs 6,854 crore in last three tranches, Vodafone Idea has paid a total of Rs 7,854 crore to DoT towards the AGR dues, against its total AGR dues of around Rs 58,000 crore. Total AGR dues for Tata Teleservices, as per the DoT, stands at Rs 16,789 crore. Out of which the company has Rs 4,197 crore so far. As the DoT estimates, telcos owe a total of Rs 1.19 lakh crore, of which it has received Rs 26,896 crore so far. Currently, the balance stands at Rs 92,520 crore.
Supreme Court reserved order on the issue of the timeline for staggered payment of AGR related dues by telecom companies. SC made it clear that it would not hear arguments for re-assessment of AGR related dues "even for a second"
Next hearing on August 10 on the issue of companies which have gone into liquidation. Companies having gone into insolvency, bonafides of their actions should be examined - Rcom, Aircel, Sistema, Videocon, etc.
Supreme Court said "Heard parties on liability and timeframe for making the payment. While hearing the matter, attempts were made to wriggle out of the liability like asking for reassessment and recalculations".
Supreme Court reserves its order wrt to the government's plea on the 20-year timeline to be given to the companies to pay the AGR dues.
Heard parties on liability and timeframe for making the payment. While hearing the matter, attempts were made to wriggle out of the liability like asking for reassessment and recalculations. Second innings being played. Government amounts taken as final. No reassessment to be made.
SG says we want to give 20 years. It's reasonable. Interest on instalment should be paid at the banking rate from the date of judgment.
SC asks SG to check bonafide of these 4 companies, including RCom and Videocon, which are in liquidation. Rs 40,000 crore is stuck with them. Why they have gone into liquidation? Bonafide of their actions is to be checked
AGR case in Supreme Court: Justice Arun Mishra said, "You all are wasting your and our time and energy, what kind of exercise you people are doing. Why you people are arguing for this now? We will impose exemplary costs on telecom companies.": ANI tweeted
Vodafone reiterates that "we don't seek reassessment, just seek time to pay. The company is not seeking reassessment of telecom dues. It says they have no assets left. Only they have undisputed GST credit of Rs 8,200 crore, which govt can retain".
Mukul Rohtagi said 'I accept Rs 58,000 crore figure given by the government. Give me 20 years to pay. My client is in very very deep waters'. SC asks how do you secure money to this country. Are you threatening the court? Your tone and tenor is not good. 'I say with folded hands. Give us at least 15 yrs. Govt has also agreed,' said Rohtagi for Vodafone Idea.
"How do we go beyond the decree? Interest has to be calculated as per our judgement. You are saying you won't even pay interest," says Justice Mishra
Parasaran from Tata Teleservices to SC, "7-10 year period would be reasonable to repay AGR dues
Justice Arun Mishra says, "If you won't comply with our orders, we will strictly take action against you. We may send directly to jail who is doing wrong things from here."
A three-member judge bench of Supreme Court asks Vodafone Idea's lawyer Mukul Rohtagi, "If you are running in loss for decades, how can we rely on you? How will you ensure paying AGR dues?"
During the hearing of Adjusted Gross Revenue (AGR) case involving many telecom companies, Vodafone Idea lawyer Mukul Rohatgi tells the Supreme Court, "We have filed details of balance sheets, tax details of one decade."
Justice Mishra asked Mukul Rohtagi "What is your arrangement for liability?'. Rohtagi said we had no provision for this liability as we had succeeded. "Whether you made arrangement for contingent liabilities yearly accounts?," Judges asked. "I have no income. Whatever I put from my pockets, I have even lost that," Rohtagi said.
Singhvi for Bharti Airtel says it has paid Rs 18,000 crore. Liability is Rs 21,000 crore. Rs 2,000 crore need to be adjusted. According to government, Airtel's liability is Rs 25,976 crore. Singhvi opposed and said only Rs 21,000 crore is the balance liability. Reconciliation of Rs 2,000 crore has to be done
Former SG Mohan Parasaran appeared for Tatas. SC asks Parasaran to tell it how will it secure the liability. Parasaran says 10-15 years was required. SC says 15 years is not a reasonable time. From where this time period has come? What will happen to the revenue of this country?
The Bench asks companies to come up with a reasonable timeline. Revenue of this country has to be saved. Foreign companies have no assets here. How Vodafone money will be recovered? If they go into liquidation, then what will happen. How do we secure the money?
Vodafone says SC order should be honoured. If the verdict can't be honoured in one stroke, it should be in parts. Give us 20 years.
Kapil Sibal for Hughes Communications says it has paid Rs 28 crore, a balance of Rs 126 crore is outstanding. Govt has bank guarantees worth Rs 69 crore available with them, govt can encash it if required. We can discharge the balance dues if some time is given.
Justice Mishra said "This is not permissible. Everyone is attempting to reopen to issue. Don't waste our time. We will impose an exemplary cost. It's contemptuous. Again you are arguing the same. We won't repeat another historic mistake. Once we had sent the matter to TDSAT. You (lawyers) all are responsible people. We want such responsibility from companies. No frivolous pleas should be raised.
We (Vodafone) have a net loss of 2,800 crores in first year, Rs 1,800 crores loss in next and thereafter a loss of Rs 523 crores. Total revenue over 10 years is 6 lakh crores, out of which expenses were Rs 495 crores, says Mukul Rohtagi
Vodafone says whatever revenue was earned, has been spent on AGR, taxes, services. Over 1 lakh crore equity used in 15 years of Indian operations.
Bharti Airtel is disputing over Rs 20,000 crore liability difference. Singhvi says this amount is not included in AGR. Judges asked him to look at the AGR definition.
Mukul Rohtagi for Vodafone Idea says it has filed details of balance sheets, tax details of one decade since 2006 when it started operations in India.
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Out of nearly Rs 43,000 crore total dues, Bharti Airtel company has paid nearly Rs 18,000 crore so far, according to the Department of Telecommunications.