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AGR Hearing HIGHLIGHTS: Jio explains RCom spectrum use, payment; SC says govt must recover past dues from cos

SC AGR Hearing HIGHLIGHTS: The Supreme Court continued to hear the case on recovery of AGR (adjusted gross revenue) dues from insolvent telecom companies such as Reliance Communications and Aircel

AGR Hearing HIGHLIGHTS: Jio explains RCom spectrum use, payment; SC says govt must recover past dues from cos

SC AGR Hearing HIGHLIGHTS: The Supreme Court continued to hear the case on recovery of AGR (adjusted gross revenue) dues from insolvent telecom companies such as Reliance Communications and Aircel. A bench led by Justices Arun Mishra, S Abdul Nazeer and MR Shah heard the case. Senior advocate Harish Salve, appearing for Reliance Jio said that RCom insolvency was triggered by Ericsson. Salve informed the SC that UVARC, the top bidder for RCom, is not fronting for anyone. Reliance Jio has submitted that they are not interested in bidding for Reliance Communications. UVARC’s equity comes from public sector banks and public sector insurance companies. “What I am using I pay for it. I pay AGR. Whatever bit I am using I am paying accordingly,” Salve said. The Supreme Court in its hearing said that the problem has been solved. Reliance Jio’s statement convinced the Justices about Reliance Communications past dues.

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16:47 (IST)18 Aug 2020
Vodafone Idea shares settle weak

Vodafone Idea shares slipped 1.45 per cent to close at Rs 8.85 apiece on BSE in Tuesday’s session. The telecom stock hit day’s high of Rs 8.98 and low of Rs 8.72 apiece.

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16:37 (IST)18 Aug 2020
Bharti Airtel shares end over 1% up on Tuesday

Bharti Airtel share price settled 1.04 per cent higher at Rs 526.80 apiece on BSE on Tuesday. The stock quoted day’s high of Rs 528.95 and low of 520.10 apiece.

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16:26 (IST)18 Aug 2020
RCom shares hit 5% upper circuit

Reliance Communications share price hit 5 per cent upper circuit again to end at Rs 2.62 apiece on BSE in Tuesday’s session

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16:13 (IST)18 Aug 2020
SC adjourned hearing for August 19

Supreme Court adjourned the hearing for tomorrow at 2.45 PM. The SC bench will sit till 5.30 PM tomorrow.

16:11 (IST)18 Aug 2020
Harish Salve reads out section 5 and Section 7

Salve reads — Section 5(21) Definition of operational debt makes no distinction. Section 7 deals with initiation of solvency by a financial creditor.

16:02 (IST)18 Aug 2020
Bench should end the hearing for the day: Ranjit Kumar

Justice Arun Mishra hurt by Ranjit Kumar’s request that the Bench should end the hearing for the day.

16:01 (IST)18 Aug 2020
How spectrum dues are operational dues: SC observes

SC observes how spectrum dues are operational dues when it is the very basis of telecom operations. Under the revenue sharing regime currently in place, spectrum dues can’t be dealt with as operational dues.

15:54 (IST)18 Aug 2020
CoC only have the right to use spectrum as an asset: Harish Salve

Harish Salve said the committee of creditors (CoC) has not claimed spectrum as an asset, but only having the right to use spectrum as an asset.

15:41 (IST)18 Aug 2020
How has there been a dramatic fall in the value of assets of RCom: SC questions

Supreme Court said how did RCom claim to have assets of over Rs 35,000crore, whereas now the fair value is just a little over Rs 10,000 crore? How has there been a dramatic fall in the value of assets of RCom?

15:34 (IST)18 Aug 2020
Higher net worth of Rs 35,000 crore was given by RCom: Salve

Senior advocate Harish Salve said that higher net worth of Rs 35,000 crore was given by RCom in the SC contempt petition and not by RP.

15:28 (IST)18 Aug 2020
DoT acknowledged that spectrum can be assigned: Salve

Harish Salve said that by recognising the spectrum as security, the DoT has acknowledged that spectrum can be assigned, otherwise banks would not get anything.

15:26 (IST)18 Aug 2020
Without license, infrastructure like towers etc will be useless: Salve

“Under the tripartite license agreement, the government has recognized the idea of the spectrum as security to be used by telcos to raise funds,” said Salve. He said the license is transferable. Without license, infrastructure like towers etc will be useless/junk.

15:12 (IST)18 Aug 2020
Govt allowed sale of spectrum and trading: Salve

“Government has allowed the sale of spectrum and trading. Under the bankruptcy law, trading guidelines require the permission of DoT. Until that permission is granted, there will be no sale. That step won’t be bypassed,” Harish Salve said. 

14:58 (IST)18 Aug 2020
Reliance Jio has paid Rs 195 crore after AGR judgement

After AGR judgment, Reliance Jio has paid Rs 195 crore which includes total dues along with shared spectrum.

14:56 (IST)18 Aug 2020
Harish Salve’s statement solves our problem: SC

The Supreme Court in its hearing said, “Harish Salve’s statement solves our problem”.

14:51 (IST)18 Aug 2020
What I am using I pay for it: Harish Salve

Harish Salve said that sharing is different as both companies are using it. “What I am using I pay for it. I pay AGR. Whatever bit I am using I am paying accordingly,” Salve said.

14:49 (IST)18 Aug 2020
Top bidder for RCom, UVARC is not fronting for anyone: Salve

Harish Salve says UVARC, the top bidder for RCom, is not fronting for anyone. Reliance Jio has submitted that they are not interested in bidding for Reliance Communications. UVARC’s equity comes from public sector banks and public sector insurance companies.

14:41 (IST)18 Aug 2020
Parliament brought in law to deal with Crown debts which used to get first priority: Salve

“It has to be a policy decision as it is raising a larger issue. Parliament brought in the law to deal with Crown debts which used to get first priority,” said Harish Salve.

14:39 (IST)18 Aug 2020
Two govt departments are at loggerheads: Harish Salve

“Two departments of government are at loggerheads,” said Harish Salve. He said that Parliament will address this.

14:38 (IST)18 Aug 2020
Spectrum is diminishing in value: Salve

Senior advocate Harish Salve said that spectrum is diminishing in value and demand has gone down.

14:37 (IST)18 Aug 2020
Insolvency of RCom was triggered by Ericsson dispute: Harish Salve

“Insolvency of Reliance Communications was triggered by Ericsson dispute. If that bankruptcy has started, then there are two RPs,” said Harish Salve.

14:35 (IST)18 Aug 2020
RCom and Aircel are obliged to pay: Harish Salve

“Admitted position that the two cos are in insolvency. RCom and Aircel are obliged to pay. It’s not in dispute. Have they indulged in subterfuge or not?,” Harish Salve said.

14:30 (IST)18 Aug 2020
Parliament has given powers by December amendment: Harish Salve

When the Supreme Court asked who has given powers to NCLT, senior advocate Harish Salve said that Parliament has given it the powers by December amendment

14:29 (IST)18 Aug 2020
How appeal is filed belatedly? Justice Mishra questions

“How appeal is filed belatedly? NCLT jurisdiction to decide on the spectrum (govt’s appeal). Delay cannot be condoned. This is happening under our nose. We can’t leave at that,” said Justice Mishra.

14:28 (IST)18 Aug 2020
Totally shocking state of affairs: Justice Mishra

It is a totally shocking state of affairs. It’s in your favour. We are not determined to take any firm view. All kind of manipulations and filing of appeals are filed. We will not allow this, says J Mishra.

14:27 (IST)18 Aug 2020
We are conscious of our responsibility: Justice Mishra

Justice Arun Mishra said “We are conscious of our responsibility. We will decide on merits”.

14:27 (IST)18 Aug 2020
Everyone will go into liquidation: Justice Mishra

Government has come out with a proposal for payment. Everyone will go into liquidation. We are dealing with the proportion of law here, says Justice Arun Mishra

14:25 (IST)18 Aug 2020
How can we leave Rs 45,000 cr like that: Justice Mishra

Justice Arun Mishra said How can we leave Rs 45,000 crore like that. You may be entering into so many arrangements. But finally, someone will have to pay. We will decide it finally.

14:24 (IST)18 Aug 2020
There is a potential area of difference between CoC and govt: Harish Salve

Senior advocate Harish Salve says want to address on 5 issues. There is a “potential area of difference” between CoC and govt. It does not arise out of the appeals.

14:21 (IST)18 Aug 2020
SC starts hearing on AGR case

The Supreme Court started the hearing on AGR case. The hearing was scheduled to start at 2 PM

14:12 (IST)18 Aug 2020
Gve year-wise dues of RCom by Tuesday: Justice Mishra to DoT

On Monday, a bench of Justices Arun Mishra, S Abdul Nazeer and M R Shah asked the Department of Telecom (DoT) to give year-wise dues of RCom by Tuesday saying that will be crucial for its verdict on the issue and posted the matter for further hearing for August 18.

14:06 (IST)18 Aug 2020
People of the country are owners of the spectrum: SG to SC

The Department of Telecommunications (DoT) on Monday told the Supreme Court that the spectrum of these companies belong to the government and cannot be part of the insolvency process. “Assets owned by a third party and held by the company under insolvency, in trust, cannot be sold. The people of the country are owners of the spectrum like all other natural resources and cannot be sold under insolvency and bankruptcy code (IBC). Spectrum is not defined as an asset under the IBC,” solicitor-general Tushar Mehta told a bench led by Justice Arun Mishra.

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13:55 (IST)18 Aug 2020
Jio-RCom spectrum sharing deal not connected with AGR liability: Sources

Reliance Jio’s four-year-old telecom spectrum sharing deal with Reliance Communications (RCom) is not connected with the latter’s past statutory dues that pertain to the period prior to 2016 when Jio wasn’t even in operation, sources close to the company said. A Supreme Court bench had on Friday sought to know why Reliance Jio Infocomm Ltd (RJIL) must not pay adjusted gross revenue (AGR) dues of Reliance Communications since it has been using the latter’s spectrum since 2016.

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13:47 (IST)18 Aug 2020
Reliance Jio explains why it shouldn’t pay RCom’s AGR dues

Reliance Jio told the Supreme Court that it is not liable for RCom’s AGR dues as it is only sharing spectrum with the company for which payment of past dues is not required under the spectrum sharing guidelines. It also said that the government has never demanded any payment of past dues of Rcom from it. It remains to be seen what does the government tells the court at the next hearing. As per the spectrum trading guidelines, the DoT is empowered to charge past dues from the buyer of spectrum as well if it comes to light after spectrum has been traded. Jio has traded some portion of spectrum from Rcom and sharing some portion

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13:40 (IST)18 Aug 2020
Reliance Jio may be served RCom’s Rs 13,000 cr bill; telecom dept may raise demand for AGR dues

The department of telecommunications (DoT) can charge Reliance Jio around Rs 13,000 crore as dues for adjusted gross revenues, if its wants, as the company had acquired 47.50 Mhz spectrum in the 800 Mhz band from Reliance Communications (RCom) through a trading pact between January-March, 2016. The spectrum was acquired across 13 circles and is currently being used by Jio to provide 4G services.

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13:33 (IST)18 Aug 2020
Jio says, ‘we don’t need to pay RCom’s dues’, as Supreme Court looks to recover AGR dues from telcos

The recovery of adjusted gross revenue (AGR) dues of the insolvent telecom operators like Reliance Communications and Aircel has got more complex as the Department of Telecommunications (DoT) on Monday told the Supreme Court that the spectrum of these companies belong to the government and cannot be part of the insolvency process.

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13:25 (IST)18 Aug 2020
Vodafone Idea shares fall over 2% in afternoon deals

Vodafone Idea share price fell 2.23 per cent to Rs 8.78 apiece in afternoon deals on BSE as SC verdict on adjusted gross revenue (AGR) dues awaited.

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13:23 (IST)18 Aug 2020
Bharti Airtel shares trade in green

Bharti Airtel shares were trading with slim gains of 0.27 per cent to Rs 522.80 apiece on BSE, as compared to a 0.58 per cent rise in S&P BSE Sensex in afternoon deals.

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13:21 (IST)18 Aug 2020
RCom share price hits 5% upper circuit yet again ahead of SC hearing on AGR dues

Reliance Communications share price hit 5 per cent upper circuit again to Rs 2.62 apiece on BSE, ahead of SC hearing on AGR dues

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