SC AGR Hearing HIGHLIGHTS: The Supreme Court in the fifth straight session, continued hearing the matter on non-payment of the adjusted gross revenue (AGR) dues by telecom companies under insolvency. A bench led by Justice Arun Mishra heard the matter. Senior advocate Harish Salve, appearing for Reliance Jio, said to the Supreme Court that it didn’t receive any notice from the government on any additional dues claimed by the Department of Telecommunications (DoT). Similarly, senior advocate Kapil Sibal for Bharti Airtel informed the court that even Airtel has not received any notice from the government over any additional dues. Sibal also said that if the SC refuses to recognise the sale of spectrum, banks will stop lending to telcos and this will hurt the telecom sector. The SC told NK Kaul, appearing for Videocon Telecom resolution professional, that as per trading guidelines, past dues need to be paid before transfer of spectrum. “If you don’t pay, Bharti, who acquired the Videocon spectrum will have to pay,” SC observed. The Supreme Court has adjourned the hearing till Monday at 4 PM.
Vodafone Idea shares settled 0.24 per cent up at Rs 8.53 apiece on BSE in Friday’s session. It hit day’s high of Rs 8.68 and low of 8.35.
Check price: Vodafone Idea
Reliance Communications (RCom) shares, during intraday trade, hit 5% upper circuit on BSE today. While the stock settled 1.47 per cent higher at Rs 2.77 apiece.
Check prices: RCom
Bharti Airtel shares fell 1.05 per cent to end at Rs 520 apiece on BSE. During the trade, the stock hit day’s high of Rs 529.40 and low of Rs 517.60.
Check prices: Bharti Airtel
The Supreme Court adjourned the hearing till Monday at 4 PM.
Also, DoT has to give details about the date of grant of original licenses, who was using these license and the date of transfer in a tabular form.
Details on the transfer of spectrum by companies and how much were previous dues till transfer was made and outstanding dues after the transfer was made, will be given in affidavit.
The DoT secretary to file an affidavit by tomorrow giving details about how much was the liability of sharer before spectrum sharing, arrears to be paid by respective operators, etc.
The Supreme Court said, “We wanted to know the liabilities of both RCom and Reliance Jio”. “Reliance Jio said it’s 195 crore and have paid it,” Harish Salve said.
“There was a sharing arrangement between RCom and RJio. We wanted this bifurcation,” Supreme Court said.
“Bifurcations of dues not given. Officers have not understood,” Justice Arun Mishra said.
The Supreme Court is not happy with figures given by the Department of Telecommunications (DoT).
“Reliance Communications (RCom) dues since 1999 have not been given,” the Supreme Court observed.
The Supreme Court said to SG “You have not given particulars of spectrum sharing between companies and their dues”.
When Harish Salve argued that the right to use spectrum is a valuable right written in balance sheets, SC questioned: Are your account books as good to be treated as property?
Reliance Communications share price again hit 5% upper circuit in the trade today. Just before closing, the stock is trading 2.20 per cent up at Rs 2.79 apiece.
Check live prices: RCom
Kapil Sibal argued that the Supreme Court rightly said spectrum is a natural resource like air, water and no one can take possession.
Senior lawyer Kapil Sibal for Bharti Airtel, said that if banks can’t use spectrum as security it will have a tremendous repercussion.
Senior lawyer Kapil Sibal said “Spectrum is recognized as an asset, it is the most valuable asset with telcos. Spectrum is taken as security by the lenders. If SC refuses to recognise the sale, banks will stop lending to telcos and this will hurt the sector”.
Harish Salve said that the issue of sale of the spectrum should be left to NCLT.
Harish Salve said “If SC holds that spectrum is not saleable this will not help recover AGR dues. Then spectrum will be returned to DoT, auctioned for future use and that won’t help recover AGR.
Senior lawyer Harish Salve argued that DoT in NCLT is challenging the resolution plan on the ground that spectrum can be sold. Our understanding is also that spectrum can be sold but not allowing sale will not help anyone.
Kapil Sibal says even Bharti Airtel has not received any notice from the government over any additional dues.
“Clarification was interpreted, the government has the discretion to recover AGR amount from any company they want. Govt hasn’t yet claimed RCom dues from RJIO,” said Harish Salve.
Senior lawyer Harish Salve says SG has forwarded his affidavit. As far as R-Jio is concerned there is a guideline and a clarification that has been issued.
Kapil Sibal said “Please allow me to file an affidavit. And I will argue on Monday”.
Senior lawyer Kapil Sibal said, “I haven’t got any details. I need to check and interpret”.
Senior lawyer Kapil Sibal for Airtel starts his argument. “Is Airtel avoiding liability?” SC asked Sibal.
Ritin Rai said Department of Telecommunications (DoT) can present its claim to the official liquidator
AGR dues of Etisalat is Rs 86 crore, as per Solicitor General. However, Etisalat has told the SC that it is liable to pay less than Rs 8 crore towards AGR.
The Department of Telecommunication (DoT) said Rs 604 crore dues to be recovered from three companies- Loop, Etisalat and STel
On January 6, 2015, the Department of Telecommunication (DoT) asserted its claims on the license fee, says Ritin Rai.
“I was a telecom operator in 2012. I surrendered my licence when my licence was cancelled after 2G judgement. I surrendered my spectrum. Winding up petition was filed in Bombay,” said Ritin Rai
Ritin Rai appears for the official liquidator in Etisalat matter
“We will confine to whether spectrum could be sold? Whether jurisdiction was there? Is it operational debt?” said SC.
“If you don’t pay, Bharti Airtel, which acquired Videocon spectrum will have to pay” said SC
“If you don’t pay Bharti who acquired Videocon spectrum will have to pay,” said SC
“If you don’t pay Bharti who acquired Videocon spectrum will have to pay,” said SC
SC tells RP that as per trading guidelines, past dues need to be paid before transfer of spectrum
“How AGR will be settled? the Supreme Court asked
NK Kaul appearing for Videocon Telecom’s resolution professional says nothing is due from us that is to be paid outside CIRP process.