In a major relief to telecom service providers, the apex court granted them 10 years time to clear adjusted gross revenue (AGR) dues, which means telecom companies have been allowed to stagger the payments of their dues over the next 10 years.
A bench headed by Justice Arun Mishra allowed their plea to deposit the amount in instalments and granted time till 2031 to clear the dues. The centre pleaded the top court to grant them 20 years but the court gave only 10-year time to the telecom companies.
Failure to pay the instalments of the dues would invite penalty, interest and contempt of court, the bench added.
The 10-year payment schedule will begin from 1 April 2021, with the annual instalments to be paid by 7 February every year.
The court ruled that telecom firms would need to pay 10 per cent of their AGR-related dues by March 31, 2021.
As per the DoT assessment:
• Vodafone Idea owed Rs 58,254 crore
• Rs 43,989 crore owed by Bharti Airtel
• While Tata Teleservices has to give nearly Rs 16,798 crore to the government
According to experts, the verdict is good for telecom companies even though the period of 10 years is lesser. They say the judgement might work in favour of Reliance Jio and Airtel but could be a matter of survival for Vodafone Idea.