Motilal Oswal: AGR Case - Supreme Court Talks Tough To Telcos; Reserves Order On Time Window
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Motilal Oswal Report
After a marathon three hour hearing on July 20, 2020, the Honorable Supreme Court (SC) disallowed any more affidavits, spoke tough and ensured the Adjusted Gross Revenue (AGR) case concluded with all stake holders giving their views. The SC reserved its order on the time window to be provided to telcos and has directed companies under liquidation (Reliance Communications, Videocon and Aircel) to submit their documents within seven days. The SC will consider this in its next hearing on August 10, 2020.
After asking telcos to make reasonable upfront payment and come up with a roadmap for AGR repayments in its last hearing, the SC has noted that a repayment timeline of 20 years is a very long period. It has asked telcos to come up with a reasonable time period. For the timelines, Tata Teleservices Ltd (TTSL) has sought seven to 10 years years repayment while Bharti Airtel /Vodafone Idea Ltd have sought 15 years (VIL initially requested for 20 years and later reduced the timeframe). However, the government has maintained its stance for a 20 year repayment period as telcos could go bankrupt in case of an extension failure.
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