Categories: Business

Telecom companies get big relief, Supreme court gives 10 years time to repay AGR

Photo: HEXAWARE

Supreme court allows telecos 10 years for staggered payment of AGR dues

new Delhi. The Supreme Court has provided major relief to the telecom companies. Supreme Court while giving its final verdict on the outstanding balance of adjusted gross revenue (AGR) Telecom companies Has provided 10 years to repay the arrears. The Supreme Court said that companies will have to pay 10 percent of their total dues by 31 March. It is worth mentioning that most companies have already paid 10 percent. This order of the Supreme Court has brought great relief to telecom companies like Vodafone Idea, Bharti Airtel, Tata Teleservices to pay dues related to adjusted gross revenue (AGR).

A bench headed by Justice Arun Mishra has allowed the AGR dues to be repaid in 10 years. The Supreme Court in its ruling has asked the telecom companies to pay 10 per cent of AGR's total outstanding dues by 31 March 2021. The remaining amount will have to be deposited in the next 10 years. Telecom companies will have to submit an affidavit to pay the AGR dues. If companies fail to pay during these 10 years, they will have to pay interest and penalty.

Justices Arun Mishra, Justices S Abdul Nazeer and MR Shah said in their judgment that the 10-year timeline to pay AGR dues would start from 1 April 2021. Its full payment should be made by 31 March 2031. The Supreme Court also made it clear that AGR dues are not re-valued.

This post was published on September 1, 2020 12:25 pm

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