InvestorQ : What is the outcome of the Supreme Court judgement on the AGR issue and how will it impact the telecom companies like Bharti Airtel and Vodafone Idea?
vaishnavi mhatre made post

What is the outcome of the Supreme Court judgement on the AGR issue and how will it impact the telecom companies like Bharti Airtel and Vodafone Idea?

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Crowny Pinto answered.
1 year ago
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In its order on 14 February, the Supreme Court came down heavily on the DOT and the telecom companies for not implementing the court order. The SC has now called upon contempt of court proceedings against the top management of the telecom companies. On 24 October, the Supreme Court had passed an order saying that the DOT was perfectly entitled to collect the AGR charges from the telecom companies and urged the telcos to pay up the dues of Rs.1.47 trillion by 24 January. However, on 23 January, the DOT had issued an internal order to its department employees and inspectors not be harsh on the telecom companies for not paying up the AGR charges on time. The Supreme Court in its 14 February ruling took exception to the attitude of the telcos and also the circular of the DOT. Post the SC order, the DOT was quick to withdraw the 23 Jan circular. Now the onus is on the telcos to pay up. While Bharti Airtel has raised the requisite money for the same, the real problem will be for Vodafone Idea, which has no means of raising the requisite funds to pay up.

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