Agr Dues Dispute: Telcos Challenge Dot’s Additional Demands

The authorities included that the quantity, which belonged to the judgement was not modified. “The added amount was for sure circles, where the accounting was under procedure at the time of the judgement.”

DoT’s Perspective on AGR Dues

The DoT contended the moment approximated Vi’s charges at Rs 58,300 crore, but the telco had actually self-assessed the fees at Rs 21,500 crore and has up until now paid Rs 7,900 crore. Bharti Airtel’s dues, according to the DoT, stood at Rs 44,000 crore, compared with the operator’s own analysis of around Rs 13,000 crore. Airtel has actually up until now paid Rs 18,000 crore, consisting of a Rs 5,000-crore impromptu settlement.

A previous DoT authorities noted it takes years to calibrate or finalise the statutory dues, consisting of AGR charges, as it involves numerous regional offices of DoT, along with the nation’s 22 telecom circles whose data should be integrated and calculated.

Once again relocated the SC questioning the DoT’s action to elevate an extra need of Rs 9,450 crore toward AGR dues, loss-making Vi has. The instalment of the AGR charges, consisting of the extra quantity, schedules by March 31, 2026.

Vi’s Challenge to Extra Demands

In spite of the amounts crystalised approximately FY17, DoT has been increasing extra demands, claiming that the dues claimed “are above and beyond, the AGR fees as settled” by the SC, the telco claimed in its appeal.

Officials in the Department of Telecom (DoT) have actually highly backed a demand for additional AGR dues, sent out to telcos after the High court articulated its order on the problem in October 2019, saying they did not flout the ruling.

Telcos’ Joint Front Against AGR

Previously today, cash-strapped Vodafone Idea (Vi) tested the demands for extra fees, while Bharti Airtel, India’s 2nd largest telco, may also do the same, mirroring a number of events in the past when the two firms signed up with hands to counter issues worrying AGR, according to professionals.

DoT officials, nonetheless, told ET that the extra need notifications were not associated with re-assessment or recalculation of fees yet completion of financial accounts that were recurring during the time of judgement. “The need notices stood and sent out for certain spaces, which were not computed at the time of the High court (SC) reasoning and a sworn statement concerning the exact same was properly filed in the pinnacle court by the DoT,” claimed a main privy to the details.

“If some bookkeeping was not completed by the time of the SC judgement, does it suggest it should not be realised by the government. To tackle this, the DoT had actually submitted an affidavit worrying such because of the SC,” the previous authorities said.

Breakdown of AGR Charges

Of the complete Rs 1.47 lakh crore of AGR charges, which the telcos are needed to pay adhering to the apex court order, virtually 75% comprises interest, fine and rate of interest on charge, the business said. Permit fee charges completed Rs 92,642 crore while the range usage fee was Rs 55,054 crore, as per the order of September 2020.

The telco has challenged the added need by the DoT citing earlier SC reasonings, which had secured the amount up until FY17 and declined to change or transform the liability. It claimed that the highest possible court had actually banned re-assessment of the AGR dues, and, consequently, the DoT’s action was “unjust, unjust and approximate” in looking for extra demands.

Airtel and Vodafone Idea are potentially going to an additional encounter the DoT over additional AGR charges demanded after the 2019 Supreme Court order. Vi has currently challenged the need of 9,450 crore, arguing the SC had secured the amount till FY17 and banned reassessment.