After SC rap, DoT withdraws earlier “no coercive action” order1 min read . Updated: 14 Feb 2020, 04:55 PM IST
- DoT to take immediate necessary action in compliance with SC judgement
- SC on Friday pulled up Airtel and Vodafone for not paying AGR dues by 23 January
New Delhi: The department of telecommunications has withdrawn its 23 January order which had said it would not take coercive action against mobile service providers that failed to meet the court-directed deadline to pay dues.
“The order dated 23 January stands withdrawn with immediate effect," the DoT said in a letter on Friday.
“It is directed to take immediate necessary action in compliance with the judgement dated 24 October of the Supreme Court," the letter said.
Mint has seen a copy of the letter.
DoT’s move comes after the Supreme Court on Friday pulled up Bharti Airtel and Vodafone Idea for not paying their adjusted gross revenue (AGR) dues to the government by 23 January.
The Supreme Court on Friday made scathing observations on the conduct of telecom companies as well as the DoT for ignoring its 24 October verdict that had directed the firms to pay DoT by 23 January over ₹1 trillion in dues for under reporting their revenues.
“We draw contempt against companies. Let the desk officer also explain why appropriate action should not be taken and he should be present on the next date of hearing. Please ask the desk officer to withdraw that dot order or he will go behind the bars by evening. We have to take action against him. Officer should understand where they should stop. It is clear contempt," the court said.
The apex court also asked top executives of the telecom operators to appear on 17 March for the hearing.
This spells another round of trouble for the telcos which have been battling a mountain of debt and plunging revenue streams. It also raises questions on the survival of Vodafone Idea and the competition in the Indian market which could see the risk of a duopoly.
Vodafone Idea’s ability to continue as a going concern is dependent on the positive outcome of the modification application filed in the apex court and the subsequent agreement with DoT for payment in instalments after some moratorium and other reliefs, the company had said on Thursday.
Airtel has already raised $3 billion to repay dues. Jio paid its AGR dues on 23 January.