DoT Weighs Penal Action On Telecom Firms For Delaying AGR Dues Payments

The telecom department is weighing penal action against telecom operators for failing to pay in time the adjusted gross revenue dues as directed by the Supreme Court of India, according to an official source.

With Saturday being a holiday in various offices, Department of Telecommunications is likely to wait till Monday evening for payment of AGR dues before sending out the next set of notices with updated penalty and other punitive action according to the licence norms, the source told Press Trust of India.

"The DoT has sent five notices to telecom operators with reminders and penalty provisions on Oct. 31, Nov. 13, Dec. 2, Jan. 20 and now on Feb. 14,” the official said.

“Telecom operators are bound to pay as per the Supreme Court order and DoT never gave them any extension. Now, telecom operators are saying they will pay a sizeable amount by Monday but action will be taken against them for every delay,” he added.

The DoT had issued stringent order to telecom operators to pay by Friday midnight. That came hours after the Supreme Court admonished it for issuing an order on not taking any coercive action against the defaulters.

According to the DoT source, the order was issued for internal processes to avoid any complication as the matter was subjudice.

"DoT did not pass any order to telecom operators. They filed a modification plea before the Supreme Court. The apex court after admitting the plea and just before the last date of payment listed the matter for a later date,” the source said.

“This left DoT with no room to seek any clarification from the court. Hence, the department passed an internal order to avoid complication and any chance of contempt to the court proceedings," the source added.

To be sure, none of the companies made the payment by Friday midnight. Bharti Airtel Ltd. said in a letter to the DoT that it can pay Rs 10,000 crore AGR dues by Feb. 20 and the balance before the next hearing in the matter on March 17. On Saturday, Vodafone Idea Ltd. said it's assessing the amount it can pay to the telecom department in the next few days.

The official cited above further said that there will be action against telecom players for delay in payments and the same has been mentioned in the notice and reminders sent to them.

According to the last available estimates, telecom operators have to collectively pay Rs 1.47 lakh crore in AGR dues.

Public sector undertakings, which do not sell telecom services, owe the DoT around Rs 2.65 lakh crore, with GAIL India Ltd. alone owing about 65 percent of the total amount. However, these PSUs have the option to approach the court for a legal recourse.

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India has been divided into 22 telecom circles, or zones, for the issue of licences to operators. And their revenues are calculated circle-wise. And so, the DoT issued circle wise demand notices to telecom firms.

An order for the UP (West) Telecom Circle asked "all telecom service providers" to clear dues by 11.59 pm Friday. It asked companies to "make the payment of outstanding dues of licence fee and spectrum usage charges by 14.02.2020, 11:59 PM positively".

Another order issued for the Rajasthan circle sought "immediate" payments, failing which action would be initiated. It sought "immediate payment of due licence fee and spectrum usage charges along with interest, penalty and interest on penalty (if applicable)" and warned that if the dues are not paid immediately, "necessary action will be taken in terms of the provisions of licence agreement without any further notice". "This may be treated as most urgent," it added.