AGR judgement: SC erred in what could be construed as straying into executive’s domain

Last Tuesday, the AGR saga seemingly achieved some sort of closure, with telcos getting clarity on an issue that has been lingering since the pronouncement of the apex court’s initial verdict in October 2019. Under the revenue-sharing model contained in the licence agreements between the government and telecom service providers, the licence fee and spectrum usage charge (SUC) payable by the telcos is a percentage of adjusted gross revenue (AGR). Last year, the Supreme Court, after a legal battle that kicked off in 2003, upheld DoT’s more expansive understanding of AGR, effectively binding telcos to pay outstanding dues along with interest and penalty.