Will cancel spectrum allocation if telcos don’t pay AGR dues: SC

After several rounds of hearings and a year later, the Supreme Court has reserved its judgment on the adjusted gross revenue (AGR) case. On the last day of hearing on Monday, the court observed that if telecom companies are unwilling to pay their dues, it would direct the Union government to cancel their spectrum allocation and licence.

While the court’s verdict on the tenure of paying AGR dues is expected to decide the future of Vodafone Idea, its ruling on spectrum held by telcos under insolvency will be critical for the telecom industry, analysts said.

The judgement on the aspect of additional liabilities, if any, will determine the payout for Reliance Jio and Bharti Airtel for past dues of Reliance Communications, Videocon and Aircel. Reliance Jio had spectrum sharing and trading pacts with RCom and Airtel with Videocon as well as Aircel.