AGR ruling may hit any company with telecom licence

NEW DELHI: The impact of the Supreme Court order on the definition of adjusted gross revenue (AGR) may not be restricted to telecom companies. It could also have an impact on any entity that has taken telecom service licence, such as internet service providers (ISPs), satellite communications providers, cable operators and even companies in the power, steel and railways sector, said legal experts and industry executives, making them liable to pay AGR-based dues.

People familiar with the matter said that the Department of Telecommunications (DoT) is examining the wider ambit of the apex court’s judgement, which backed the government’s stance of including non-core revenue under AGR. Discussions have started on whether the DoT can send demand notices to such companies. Under the Supreme Court order, telecom companies may need to pay over Rs 1.3 lakh crore in three months in AGR-based dues.