Supreme Court Asks Why Jio Shouldn’t Be Paying AGR Dues for Using Spectrum of RCom

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AGR (Adjusted Gross Revenue) dues have become a major pain for the telecom industry of India. It has affected not only the operators that are actively providing telecom services, but also the operators which have gone insolvent. Back on October 24, 2019, the Supreme Court had ruled in favour of the Department of Telecommunications (DoT) and held its definition of AGR dues above what telcos were demanding. Telecom companies in India did not feel liable to pay AGR on the revenue they earned from non-telecom services. But SC sided with DoT. The apex court did recognise that revenue from the sale of assets and insurance claims won’t be considered when calculating AGR dues. Also, SC is not going to entertain the demand of telcos for recalculating the dues but will only consider a decision for the length of the period it has to be paid in. The apex court recognised that the insolvent telcos of India have over Rs 40,000 crore in AGR dues. Read below all the updates that took place today regarding the matter.

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SC Wants to Know Who is Using Spectrum of Insolvent Companies

Justice Arun Mishra led SC bench started with hearing the RCom’s case which owes around Rs 25,000 crore in AGR dues. There was Harsh Salve representing SBI. SBI made its position clear by saying that it recognises the spectrum as an asset of the telco. SBI also said that the Committee of Creditors (COC) gets full autonomy on deciding which party gets how much and said that the operational creditors such as DoT can’t be paid at par with financial creditors.