Govt backs telcos in SC, seeks payment of AGR dues over 20 years

The government has appealed to the Supreme Court to allow telecom companies to pay adjusted gross revenue (AGR) over 20 years on 8 per cent interest, fearing bankruptcy in the industry if the court’s order for immediate payment is enforced.

“Any immediate adverse impact on the functioning of telcos will hurt not just the economy, but also the interest or crores of consumers,” said the telecom department before the court, according to NDTV.com.

The department said the court’s judgment on October 24, 2019 “has translated into huge amounts becoming payable.”

“It would have inevitable consequences that won’t be in anyone’s interest,” the government said, pointing out that the telcos have already made part payments. The remaining dues, it said, will be protected by the levy of 8 per cent interest on staggered payments.