AGR case: Supreme Court fears bankruptcy proceedings may consume dues

The Supreme Court on Thursday expressed concern over adjusted gross revenue (AGR) dues melting away in bankruptcy proceedings.

“We are worried that alm­ost the entire AGR dues will be extinguished in the IBC (Inso­lvency and Bankruptcy Code) proceedings. After sale (of spec­trum), new users will exti­n­guish pending (demands for dues),” Justice Arun Mishra said. He said in case the dues were not paid, the spectrum must be surrendered.

Justice Mishra observed under the IBC spectrum trading was different from spectrum sale.

“Without paying for the horse, telcos are taking a ride. We want to know from the Department of Telecom­munications (DoT) all details of spectrum allocated since 1999 to RCom (Reliance Communications) and Aircel and the details of spectrum sharing,” he said.