The country’s two biggest telecom companies Bharti Airtel and Vodafone Idea have suffered a major setback in Adjusted Gross Revenue (AGR). In fact, the Supreme Court dismissed Airtel and Vodafone applications, including appeals to improve the AGR calculation.
Let us tell you that in January of this year, Airtel and Vodafone Idea requested a re-calculation of “mathematical errors” in the AGR balance calculation. These companies wanted the Supreme Court to direct the Department of Telecommunications (DOT), but the court rejected the application.
Trouble with AGR balances: In fact, AGR dues are a problem for telecom companies. The trouble began in 2019 when the Supreme Court ruled in the interest of the Department of Telecommunications (DOT) of the Ministry of Communications, that the telecom companies had to pay AGR Rs 1 lakh crore. Vodafone Idea and Airtel have been greatly affected by the court ruling, as the two companies owe two-thirds of their total.
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10 years awarded: Following the appeals of telecom companies, the Supreme Court last year granted Vodafone Idea, Bharti Airtel and Tata Tele Services some terms of 10 years. In addition, the court had instructed the telecom companies to pay 10 per cent of the outstanding balance by March 31, 2021.
What is an AGR: Adjusted Gross Revenue (AGR) is a type of use and license fee. This fee is collected by the Department of Telecommunications (DOT) of the Ministry of Communication. Telecom companies have been hesitant over the past several years, and telecom companies have been reluctant to give it up. However, following the Supreme Court ruling in 2019, telecom companies are now ready to pay dues, but at the same time they are trying to get a different exemption.