Published 20:52 IST, August 10th 2020
Supreme Court asks DOT to apprise how it will recover AGR dues from Telecos facing insolvency
The Supreme Court on Monday asked Department of Telecom (DoT) to apprise it as how it plans to recover Adjusted Gross Revenue (AGR) related dues from telecom companies facing insolvency proceedings and whether spectrum given to these companies can be sold.
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Supreme Court on Monday asked Department of Telecom (DoT) to apprise it as how it plans to recover Adjusted Gross Revenue (AGR) related dues from telecom companies facing insolvency proceedings and wher spectrum given to se companies can be sold.
DoT told top court that ir stand is that spectrum cant be sold by telecom companies facing insolvency proceedings as it t ir property.
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A bench of Justices Arun Mishra, S Abdul Nazeer and M R Shah asked Solicitor General Tushar Mehta, appearing for DoT to apprise it as how it plan to recovers AGR related dues from se companies.
“Please tell us what will happen to DoT’s AGR related dues, if companies like RCOM, Aircel and Videocon goes into insolvency n what would happen to said amount. Tell us how you will recover Rs 31,000 from RCOM and Rs 12,000 crore from Aircel. You have to do something. This is a public money,” bench told Mehta.
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It said that court needs to ascertain bonafides of telecom companies who have gone under proceedings under Insolvency and Bankruptcy Code (IBC).
Mehta said that he will be filing an affidavit in this regard. He said telecom companies at varying st of insolvency proceedings.
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law officer said that ir appeal against National Company Law Appellate Tribunal (NCLAT) order has been pending before top court on question wher spectrum given to companies can be sold or t.
bench asked Mehta as why did NCLAT dismissed ir petition against sale of spectrum to which he replied that due to delay in filing of appeal against order.
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“Why was delay in filing appeal? What would happen if spectrum is sold out by n?” bench said.
It said that court want to go into cause of initiation of insolvency for se telecom companies and want to kw about ir liabilities and what was urgency for pushing for insolvency.
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bench said it wanted to kw as how insolvency proceedings were initiated against Reliance Communication (RCOM) even after operational creditor Swedish telecom equipment maker Ericsson was paid its dues.
“How were proceedings under IBC, revived when Supreme Court had in its 2019 order directed for settlement of dues of Ericsson?”, bench said.
Senior advocate Shyam Divan, appearing for Resolution Professional for RCOM narrated sequence of events to bench.
bench said, “our order is binding for all courts and tribunals. How can NCLAT revive insolvency proceedings despite payment to Ericsson?” bench asked companies to file affidavit giving each and every detail by next date of hearing.
Senior advocate Ravi Kadam, appearing for Aircel said that as per m spectrum can be sold as it was mentioned in terms and condition that it is transferable and company have made an upfront payment for it.
"Since spectrum is transferable refore, it can be sold", he said.
He said that this stand of company has been upheld by National Company Law Tribunal (NCLT).
Kadam said that Aircel was t going into liquidation as a resolution plan has been approved by NCLT.
bench n asked SG to come prepared on next date of hearing as how spectrum can be sold.
On July 20, top court made it clear it will t hear "even for a second" arguments on reassessment or re-calculation of AGR related dues of telecom companies which run into about Rs 1.6 lakh crore.
apex court had observed that it was t a reasonable proposal that a period of 15 to 20 years be given to telecom companies to pay AGR dues.
It had reserved verdict on issue of timeline for staggered payment of AGR-related dues by telecom companies.
top court, which on June 18 had asked telecom companies including Bharti Airtel, Vodafone to file ir books of accounts for last ten year and give a reasonable time frame for paying AGR dues.
top court had took te of submission of Centre that re were “moratorium” in place with regard to some companies like RCom and Videocon as insolvency proceedings against m have started.
It had sought details within seven days from Centre with regard to pendency of proceedings against some firms under IBC and said that it would like to ensure wher IBC was being misused to “escape liabilities”.
Centre had earlier urged top court that up to 20 years be given to telecom companies for payment of dues in a staggered manner.
On June 18, top court was informed by Centre that DoT has decided to withdraw 96 per cent of Rs 4 lakh crore demand for AGR related dues raised against n-telecom PSUs like GAIL.
apex court had in October 2019 delivered verdict on AGR issue for calculating government dues of telecom companies such as licence fee and spectrum us charges.
After top court had rejected pleas by Vodafone Idea, Bharti Airtel and Tata Teleservices seeking review of judgement which widened definition of AGR by including n-telecom revenues, DoT had in March moved a plea seeking staggered payment over 20 years.
(Photo Credit: PTI)
20:52 IST, August 10th 2020