AGR woes: DoT asks telcos to clear dues by midnight after SC rap; withdraws order of no coercive motion towards defaulting corporations

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After Supreme Courtroom rap, the telecom division started issuing orders, directing corporations equivalent to Bharti Airtel and Vodafone Concept to clear dues earlier than Friday midnight.

The DoT, which confronted the ire of the Supreme Courtroom for placing on maintain restoration of dues from telecom corporations, began issuing circle or zone-wise demand notices to corporations, an order seen by PTI stated.

The order issued on Friday by the UP (West) Telecom Circle requested “all telecom service suppliers” to clear dues by 11.59 pm Friday.

“Just about topic cited above, you’re hereby directed to make the fee of excellent dues of licence price and spectrum utilization prices by 14.02.2020, 11:59 PM positively,” it stated.

One of many telecom operators, who didn’t want to be named, confirmed the receipt of the stated order from the circle.

Whereas in all, 15 entities owe the federal government Rs 1.47 lakh crore — Rs 92,642 crore in unpaid licence price and one other Rs 55,054 crore in excellent spectrum utilization prices, it isn’t instantly clear simply how a lot of that has been sought by the federal government by midnight tonight.

The order issued the circle-based Controller of Communication Accounts got here after the telecom division earlier on Friday withdrew its order that requested for no coercive motion towards telecom corporations defaulting on statutory dues fee.

Earlier within the day, the telecom division has withdrawn its order that requested for no coercive motion towards telecom corporations defaulting on statutory dues fee after the Supreme Courtroom on Friday took a robust view of non-compliance with its order.

The order additionally directs subject places of work to take “quick needed motion” in compliance with the October judgment of the Supreme Courtroom. The path by the DoT says its earlier order dated 23 January, 2020 “stands withdrawn with quick impact”.

“It’s directed to take quick needed motion in compliance with the judgement dated 24 October, 2019 of the Supreme Courtroom,” stated the recent order issued by the DoT quickly after the apex courtroom made its observations on Friday.

The division’s transfer got here after the Supreme Courtroom on Friday directed the managing administrators and administrators of telcos and different corporations to elucidate why contempt motion be not taken towards them for non-compliance of its order to pay adjusted gross income (AGR) of Rs 1.47 lakh crore to the Division of Telecommunications.

Taking sturdy observe of the non-compliance of its order, a bench of Justice Arun Mishra, Justice S Abdul Nazeer and Justice M R Shah expressed anguish over the order handed by DoT’s desk officer, staying the impact of its verdict in AGR matter.

Of the three non-public gamers working within the Indian telecom market, Vodafone Concept is taken into account to be in essentially the most susceptible place.

Vodafone Concept is gazing dues value Rs 53,000 crore that features as much as Rs 24,729 crore of spectrum dues and one other Rs 28,309 crore in licence price, and the corporate had earlier warned of shutdown if no reduction was given.

 AGR woes: DoT asks telcos to clear dues by midnight after SC rap; withdraws order of no coercive action against defaulting firms

Representational picture. Reuters

Vodafone Concept in its earnings assertion on Thursday had additionally sounded out warnings on “materials uncertainty” casting “important doubt” on its means to proceed as a going concern.

VIL had stated on Thursday that the corporate’s means to proceed as a going concern is actually depending on a optimistic consequence of its modification utility within the Supreme Courtroom on the AGR matter and any reduction from the telecom division on funds.

Final week, Vodafone Chief Govt Officer Nick Learn had stated the scenario in India is important, following the AGR ruling of the Supreme Courtroom. The British telecom main holds 45.39 % stake in VIL.

VIL had suffered staggering Rs 50,922 crore loss within the September quarter (highest ever loss posted by any Indian company), when it had made provisions for statutory dues following the Supreme Courtroom’s order within the adjusted gross income matter, though its losses in December quarter narrowed to Rs 6,439 crore.

Rival Bharti Airtel’s liabilities added as much as practically Rs 35,586 crore, together with licence price and spectrum utilization cost dues. However, Airtel had already stated that the previously-mentioned materials uncertainty on the group’s means to proceed as a going concern “now not exists” after the latest Rs 21,502 crore fund elevating by it.

Many of the remaining legal responsibility is with state-owned BSNL/MTNL and among the shut/bankrupt telecom corporations.

(With PTI inputs)

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