Bharti Airtel Moves SC Seeking Recalculation of AGR Dues

Telecom Service Provider Bharti Airtel moves SC seeking recalculation of AGR dues. Apparently, the leading telecom company owes a sum of INR 44000 crore. However, the company points out to an estimated due amount of INR 13004 crores. The alleged mismatch in the estimated amount by the Company and the assessment amount under a previous Court order has resulted in the company's prayer for recalling the previous order. DoT has not taken the AGR payment which has already been made into account while raising demands for different circles and years, says the petitioner. In this regard, the company claimed to have made a payment of Rs 18000 Crore already.

Also, the orders issued by the court earlier, directing that the stated amounts should be treated as final and no further process of assessment should be there, “are ex facie a mistake of this Hon’ble Court”. The petition adds.  

Airtel specifies the following mistakes in the previous court order:

1. The assessment process of the past dues had not been finalized. 

2. Accordingly, the Respondent’s said annexed Chart had explicitly mentioned that the amounts given therein was on the basis of “Preliminary Assessments” and were explicitly stated to be “subject to further revisions due to departmental assessments.” 

Addition of revenue twice from different audit reports, errors of omission and commission led to rise in AGR dues: Bharti Airtel  

Bharti Airtel further argued that addition of revenue twice from different audit reports, errors of omission and commission led to rise in AGR dues, alleging that an improper interest rate was applied to raise demands for Spectrum Usage Charge (SUC). 

In light of these claims, the petitioner seeks clarification/modification/recall of earlier orders  

In October 2019, SC upheld the DoT’s definition of AGR and had ordered telecom companies to clear dues within three months. Also, the review petitions filed by telecom companies were rejected in January 2020, after which they asked for a longer timeline to pay AGR dues in order to avoid bankruptcy. 

In view of the prayers, SC provided 10 years to telecom companies to pay off their  AGR dues last year in September.

It had also directed the NCLT to decide on spectrum sale under IBC. It also exempted payment on entire past dues of shared spectrum, which saved Reliance Jio and Bharti Airtel from paying AGR dues worth over Rs 40,000 crore.