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Supreme Court To Declare Dates For Hearing Of Review Petitions In AGR Dispute On Thursday

Telecom operators approach Supreme Court seeking urgent hearing in the AGR dispute.

Customers gather outside a multi-brand mobile phone store displaying signage for Bharti Airtel Ltd. and Vodafone Group Plc in the old Delhi area of New Delhi. (Photographer: Prashanth Vishwanathan/Bloomberg)
Customers gather outside a multi-brand mobile phone store displaying signage for Bharti Airtel Ltd. and Vodafone Group Plc in the old Delhi area of New Delhi. (Photographer: Prashanth Vishwanathan/Bloomberg)

The Supreme Court said it would announce on Thursday the dates for hearing of review petitions in the case pertaining to the definition of adjusted gross revenue that can have implications on India’s telecom operators.

The operators have sought urgent hearing of a review petition in the apex court, days before a top court-mandated deadline for paying thousands of crores as dues and penalties to the government is set to expire.

The apex court had ruled on Oct. 24, 2019, that the operators would have to include non-core revenue to calculate levies. That left them with a mountainous bill of around Rs 92,000 crore as adjusted gross revenue dues, which comprises spectrum usage charges and licence fees, among others.

The companies are contesting the definition of adjusted gross revenue, which also includes non-telecom revenue. A bench headed by Justice Arun Mishra that delivered the verdict gave the companies a three-month deadline to make the payment—which is set to expire this month.

Today, the companies’ counsels also requested that the petitions be heard in open court. Review petitions against the Supreme Court’s judgments are usually heard behind closed doors but the judges can make exceptions.

The bench headed by Justice Mishra informed the top court that it will consult Chief Justice of India SA Bobde on listing of the case. The bench also asked the counsels to be present in court for an update on their request.

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Bharti Airtel Ltd., which is one of the petitioners, has contested the levy of penalty and interest on penalty on the amount payable based on the court-approved definition of AGR.

The Sunil Bharti Mittal-promoted company has argued that the top court judgment will result in an unjust enrichment of the Department of Telecommunications. The company said it has never defaulted on its payment obligations and that the department shouldn’t be entitled to any penalty on the dues. The company said it has made all necessary payments even while the definition of AGR was challenged in the top court.

Bharti Airtel’s rival Vodafone Idea Ltd., too, has sought a review of the judgment in the AGR dispute.

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