1 min read.Updated: 23 Jul 2021, 12:03 PM ISTLivemint
The Supreme Court pronounced its judgment on Airtel, Vodafone-Idea's pleas seeking direction for correction of errors in Adjusted Gross Revenue (AGR) calculation
Pronouncing its judgment on Bharti Airtel and Vodafone Idea's pleas seeking direction for correction of errors in Adjusted Gross Revenue (AGR) calculation on Friday, the Supreme Court (SC) dismissed the applications of the two telecom companies for the recomputation of AGR dues demanded by the Department of Telecommunication (DoT).
“All the miscellaneous applications are dismissed," a bench headed by Justice L Nageswara Rao said while pronouncing the order. The verdict was slated to be pronounced on Thursday but was cancelled at the last hour.
Shares of cash-strapped Vodafone Idea plunged as much as 10% to ₹8 per share post the verdict that came as a setback for the telcos, whereas that of Bharti Airtel was trading over 1% higher at ₹552 apiece on the BSE.
In September last year, the apex court had ordered the telecom companies to pay their dues. It had granted 10 years to Vodafone Idea, Bharti Airtel and Tata Teleservices for paying the dues to the DoT with certain conditions. The SC had asked telcos to pay 10% of the dues by March 31, 2021.
A bench headed by Justice Arun Mishra had held that the demand made by the DoT and the verdict delivered by the SC were final. The bench had asked the Managing Directors (MDs) or Chief Executive Officer (CEOs) of the telcos concerned to furnish undertaking or personal guarantee for payment of dues.
In January this year, Bharti Airtel Ltd and Vodafone Idea Ltd had moved the apex court seeking directions to the DoT to recalculate AGR dues, citing "mathematical errors" in calculation of the outstanding amount by the department.
The top court, which had held that demand raised by the DoT in respect of AGR dues will be final, had said there shall be no dispute raised by the telcos and that there shall not be any re-assessment.
The apex court had in October 2019 delivered its verdict on the AGR issue.