There is an AGR Collection setback for Indian telecom operators. The Supreme Court allowed the government to recover 92,000 crore from Indian telcos. There is Adjusted Gross Revenue (AGR) dispute between operators and DOT. While paying companies will also have to pay fine and interest. The court upheld the definition of AGR decided by the Department of Telecommunications. The court dismissed the appeal of the telecom companies. Also said that there will be no more litigation in this case. The payment time will fix for calculating the outstanding payment.
Telecom companies have to pay 3% of AGR to the government in the form of spectrum fee and 8% license fee
Telecom companies have to pay 3% of AGR to the government in the form of spectrum fee and 8% license fee. Companies calculate ADRs based on the 2015 decision of the Telecom Tribunal. The tribunal had said at the time that the AGR would exclude revenue from non-core sources. This will include rent, profit from sale of permanent property, dividend and interest. Foreign currency exchange (forex) adjustment was also considered in AGR.
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Stranded debt, foreign exchange fluctuations and junk sales get excluded from the AGR. The Department of Telecommunications also considers rent. The profit from the sale of permanent property and the amount received from the sale of junk in AGR. It was on this basis that he was demanding the outstanding fees from the telecom companies.
How much AGR Collection owed to which company in India
The Department of Communications had filed an affidavit in the Supreme Court in July. They inform about the license fees outstanding on the telecom companies. A total of Rs 92,641.61 crore reported as outstanding.
Bharti Airtel said that the Supreme Court’s decision on AGR collection would harm the telecom sector
Bharti Airtel said that the Supreme Court’s decision on AGR would harm the telecom sector. The government should review its impact and find a way to reduce the economic burden on the telecom. Indian telecom sector already going through difficulties. The COAI of India said the decision was a major setback for the telecom industry.
