AGR dues: DoT seeks Supreme Court nod for 20-year window for payment

India’s telecom department (DoT) on Monday moved the Supreme Court seeking an approval for a 20-year window for payment of around Rs 1.47 lakh crore Adjusted Gross Revenue (AGR) dues. The move could bring some respite to telcos, especially Vodafone Idea, which is starting at a collapse.

The Supreme Court is likely to hear the matter on adjusted gross revenues.

The telecom department said that the interest on the principal and penalty not be charged beyond judgment date, while dues payable to the government be protected by levy of 8% interest on staggered payments.

The telecom also sought the court’s approve for a formula arrived at for recovery of dues from telecom companies after detailed deliberation by government and cabinet.

Vodafone Idea earlier today said that it cleared the principal amount towards AGR dues as it paid Rs 3,354 crore to the Department of Telecommunications (DoT).

“The Company had earlier paid a sum of Rs.2,500 crores on 17 February 2020 and a further sum of Rs.1,000 crores on 20 February 2020 towards this liability. The Company has today paid a further amount of Rs. 3,354 crores to the DoT, being the balance part of the principal amount towards AGR liability,” the company said in its BSE filing.

Vodafone Idea had filed its self-assessment of the AGR liabilities with the Department of Telecommunications on 6 March, 2020, in which AGR liability principal amount of Rs.6,854 crores was determined for the period from FY 2006-07 to FY 2018-19.

According to the Vodafone Idea’s own assessment, its AGR dues amount to Rs 21,533 crore, if which the principal amount has been pegged at Rs 6,854 crore. The DoT’s estimate though is for overall dues at Rs 53,000 crore.