Utkarsh Anand Profile picture
National Legal Editor, Hindustan Times Past: CNN-News18, Indian Express, Press Trust of India

Jun 11, 2020, 15 tweets

#AGR matter begins in the #SupremeCourt.

SG Tushar Mehta appears for DoT, points out the application filed to allow staggered payments by the telecom companies, including #Airtel and #Vodafone Idea of the AGR dues of around Rs 1.47 lakh crore.

Mehta submits directing telecom majors to pay the #AGR dues in one go will impact the interest of customers in so far as quality & services are concerned. Govt tells customers will suffer in case repercussions on telecom majors will have impact on consumers across the country.

#SupremeCourt asks SG what's the guarantee that telecom companies will abide with the time frame fixed. "How can you secure the sum? Undertakings won't suffice. Some may rather go to jail than paying up. How will you ensure payments".

#AGR

SG Mehta says telecom co.will have to satisfy the #SupremeCourt about payments.

Tata Telecom seeks adjournment to enable telecom firms file their replies to the proposal by the Govt.

#AGR

The bench, led by Justice Arun Mishra, questions what's the justification for striking off #AGR dues of PSUs when the court judgement didn't say anything like that.

"I wonder everyday how our judgment has been used & misused. Who is this gentlemen doing nuisance?"

Even as SG submits license conditions are different for the PSUs, the bench expresses displeasure over bills being issued to PSUs despite the court judgment not saying anything on this.

"Tell us why it was raised & what's your suggestion to them? Is it to pressurise the court?"

"Licensing conditions are different..vast differences..so how did you raise the bills? Was it only to put this court under pressure that PSUs will also have to pay? Are you going to withdraw it? What do you say?" the bench asks SG.

PSUS have been given bills of Rs 4 lakh crore.

SC: "This demand from the PSUs is impermissible. Your officers can't go scot free. They will have to explain how did they raise such a demand. It was completely illegal. You better withdraw this demand. These officers are misusing our judgment. Let them file affidavits now."

"Who has seen 20 yrs? Nobody knows what will happen in next 20 yrs..not even companies. Your plea of 20 yrs can't be reasonable, especially when this matter is already pending for 20 years. Litigation begins on 1999," remarks SC on DoT's application for payment over 20 years.

AM Singhvi appears for Bharti Airtel, submits they have paid 100% as per their calculation.

On Singhvi's statement that licenses of spectrum can be cancelled in case of failure of a new payment schedule, SC says it will need something more. "Bank guarantee?"

Sr adv Mukul Rohatgi, for #Vodafone, too says licenses & spectrum charges have been secured by telecom co. at thousands of crores & they can be cancelled, transferred in cases of failure to pay.

Rohatgi: "We don't even have enough to pay our employees."

SC emphasises the #AGR dues have to be recovered from the telecom co.

"We want to make sure money comes to the Govt. Find our from clients about bank guarantees, personal guarantees, undertakings etc," SC asks lawyers.

Justice Mishra asks SG to adduce the latest statistics on the #AGR dues owed by the companies & proposal to recover it.

When asked to also give data on the current revenue by the telecom co., SG says the Govt may not have this information. Rohatgi says firms will give it.

SC in its order on #AGR:

* Says its 2019 judgment couldn't have been made basis of raising demands from the PSUs

* Asks DoT to reconsider its bills to PSUs

* Telecom co.to file affidavits on how will they pay the dues

#SupremeCourt will take up the #AGR case on Thursday next by which telecom companies, DoT will file their affidavits on payments and schedule.

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