InvestorQ : What happens finally on the AGR case now, with still no solution in place?
Rashi Mehra made post

What happens finally on the AGR case now, with still no solution in place?

diksha shah answered.
2 years ago

Even as Airtel and Vodafone Idea are struggling to get better terms of payment from the court, it has taken an altogether different twist. In fact, an unexpected casualty of the AGR case has been the RCOM resolution plan.

Where does this problem stem from? It may be recollected that under the resolution approved by the committee of creditors or COC under the aegis of NCLT, the lenders would have received Rs.23,000 crore out of the outstanding amount of Rs.33,000 crore.

Ironically, RCOM owes Rs.25,199 crore in the form of spectrum usage charges or SUC and AGR charges to the DOT. Now, DOT is insisting that its dues be paid before the NCLT sale can be taken up and as a result the NCLT has held back the decision on the RCOM resolution.

The RCOM counsel has said that if spectrum sale is not allowed, liquidation may be the only option. Interestingly, the RCOM counsel is Harish Salve, who is also representing Reliance Jio in the current case and arguing that Rs.195 crore of spectrum costs is already paid.

The sum and substance of the story is that the resolution for the core issue pertaining to Airtel and Idea may get extended further. It has already been going on for close to a year with no resolution in sight. It may not just get extended further in an impasse.