In a major development in the AGR (adjusted gross revenue) case, Reliance Jio Infocomm Ltd informed the apex court that there is no legal basis for transferring Reliance Communications’ (RCom) dues to Jio, stating it would be a “travesty” of the law if competitors are made to pay each other’s dues.
In an affidavit in the top court, the telecom giant said the telecommunications department had created “misunderstandings” over the statutory liabilities. It further added the government had never claimed such dues so far based on its 2016 spectrum-sharing pact with RCom under which Jio had bought RCom’s spectrum in 8 circles.
It should be mentioned here that the country’s largest telecom service provider has been dragged into the adjusted gross revenue (AGR) case to find out if bankrupt telcos such as RCom, Videocon had filed for insolvency to evade paying the dues.
The bench asked the DoT for its stand on making Jio liable since Reliance Jio Infocomm Ltd had been using some of RCom’s airwaves under the 2016 agreement.
Jio stated it signed the pact with RCom by paying about Rs 6,627 crore in order to liberalise spectrum that’s been allocated without auctions.
There is no such provision for sharing of liabilities for DoT dues, Jio added.
Although Mukesh Ambani-owned Jio has paid its AGR dues of nearly Rs 195 crore, Reliance Communications owes the Indian government about Rs 31,000