[AGR Dues Case] Supreme Court Reserves Orders In Plea By Airtel, Vodafone & TATA Seeking Correction Of Errors

  • Shruti Kakkar
  • 07:11 PM, 19 Jul 2021

Read Time: 07 minutes

The Supreme Court today reserved orders in a plea by Airtel, Vodafone and TATA seeking correction of errors in demand of Adjusted Gross Revenue (AGR) dues. 

Matter was heard by a bench of Justice LN Rao, Justice S Abdul Nazeer and Justice MR Shah. 

Senior Advocate Mukul Rohatgi appearing for Vodafone submitted that Vodafone succeeded in TDSAT but the same was reversed by this Court and then an expanded version of AGR came into force. He further submitted that the amount was spread over 20 years and was now facing demand of Rs 58000 crore.

“The judgement allowed us 10 years for payment and we have paid more than what was required under the first installment. There were some arithmetical errors in calculation of dues. If I have paid Re 1, only 50 paise is reflected,” submitted Senior Advocate Mukul Rohatgi. 

While praying for the Court allowing to place all these errors before the Department of Telecom, Senior Advocate Rohatgi further submitted that, 

“The figure is not cast in stone. I'm not asking for a review but I have a very simple point. Several tribunals do not have the power of review but have the power to correct arithmetical errors. Any court for the interest of Justice will take a look at the arithmetical error. I am in compliance and I don't want to delay the instalments.”

Senior Advocate Dr Abhishek Manu Singhvi on behalf of Bharti Airtel submitted that Airtel was not seeking re computation of AGR dues but was only asking for the Department of Telecom to consider the issues pertaining to payments made not being accounted for; duplication and not allowing certain permissible deductions. 

We don't want to pay thousands of crores on account of these errors,” Senior Advocate Dr Abhishek Manu Singhvi added.

Appearing for TATA Telecom, Senior Advocate Arvind Datar submitted that the judgement only prohibited re assessment and not re calculation. He also contended that within the AGR demand computation certain amounts have been taken twice.

“Errors have no bearing on the Judgement,” Senior Advocate Arvind Datar further argued.

Solicitor General on behalf of the Department of Telecom sought time to seek instructions. 

I do not have any instructions in this matter. I need two days' time to seek instructions. It may be hazardous for me to make any statement without any instructions from the Department of Telecom. I seek time for a day or two,” Solicitor General submitted.

In September 2020, the top court had reaffirmed the dues payable by telecom companies particularly Bharti Airtel and Vodafone. It had granted 10 years to telecom firms such as Vodafone Idea, Bharti Airtel and Tata Teleservices for paying the AGR related dues to DOT with certain conditions. 

Telecom Companies were asked to pay 10% of their dues by March 31, 2021.

Pointing out that there were a number of errors that were made in arriving at those AGR Dues, Bharti Airtel and Vodafone in January, 2021 had approached the Supreme Court.

The Court thereafter reserved orders in the plea by Airtel and Vodafone and directed the Solicitor General to file response to the applications. 

The matter will now be heard after two weeks.

Case Title: Union of India v. Reliance Communication & Ors