Thread by @barandbench

Supreme Court Bench of Justices Arun Mishra, S Abdul Nazeer, and MR Shah to hear the matter concerning payment of AGR dues at 1130. @VodafoneIN @airtelindia

The Court had pulled up DoT for demanding AGR dues from PSUs observing that the judgment passed in October 2019 was silent on PSUs. The Court had also sought a response from telecom companies regarding their proposed mode and manner of payment of the dues.

Counsels during the last hearing:

SG Tushar Mehta for the Government
Abhishek Manu Singhvi for Airtel
Mukul Rohtagi had appeared for Vodafone
Kapil Sibal for Hughes Telecom

@KapilSibal @DrAMSinghvi @DoT_India

Bench assembles, hearing begins.

SG Mehta addresses the Court on the issue of PSUs first.

Mehta, for DoT: They (PSUs) are not in the business of providing that service and thus DoT has decided to withdraw the demands

#SupremeCourt #AGRDues @DoT_India

As regards payment of dues:

Senior Counsel Abhishek Manu Singhvi for Bharti Airtel tells the Court that out of the ₹21,000 Crores, Airtel has paid over 18,000 Crores

#SupremeCourt #AGRDues @DoT_India @airtelindia

Singhvi: I'm one of the two major operators and the country needs to have competition.

I have license fees and bank guarantees which DoT needs to evaluate.

My affidavit says DoT has got my bank guarantee.

@DrAMSinghvi
#SupremeCourt #AGRDues @DoT_India @airtelindia

Digressing from the subject, Singhvi in lighter vein tells the Judges that the visual shows that the Judges are not maintaining social distancing in their seating arrangement.

Judges adjust their seating before proceeding.

Singhvi continues, says that the bank guarantee given is in excess of the demands made, endorses the view taken by Mehta for DoT to consider the proposal made by Airtel for its payment of dues

@DrAMSinghvi
#SupremeCourt #AGRDues

Singhvi says DoT can encash the guarantee if Airtel defaults in payment of dues that is still left to be paid.

@DrAMSinghvi
#SupremeCourt #AGRDues @airtelindia

Senior Counsel Mukul Rohatgi for Vodafone tells the Court that his client is in a very precarious condition, says Vodafone-Idea is not in a condition to furnish any fresh bank guarantee.

#SupremeCourt #AGRDues @VodafoneIN

Rohatgi: My losses are over 1 lakh crores.

The bank guarantee of over 15,000 crores is lying with the GOI and cannot offer any more surety.

#SupremeCourt #AGRDues @VodafoneIN @DoT_India

Rohatgi: I have no profits for the past many quarters. After servicing debts, paying off Debt, I continue to make losses.

Most of my assets are with banks as guarantees, even towers are with Banks as guarantees

#SupremeCourt #AGRDues @VodafoneIN @DoT_India

Rohatgi for @VodafoneIN: For last five years I have not made any profit

#SupremeCourt #AGRDues

Rohatgi informs Court that he has instructions regarding annual AGR payment of ₹5000 Crores

#SupremeCourt #AGRDues

Rohatgi: If I am asked to pay up tomorrow, the company will not remain a going concern and go under, I have 11,000 employees who will be left with no jobs.

#SupremeCourt #AGRDues @VodafoneIN

Court asks Vodafone Idea about the worth of Company's Assets

#SupremeCourt #AGRDues @VodafoneIN

Court asks if Vodafone made provisions in its books for contingent liabilities if it is not making any profits

#SupremeCourt #AGRDues @VodafoneIN

Rohatgi says that all documents and books can be presented to show the company's financials.

The court is informed that the assets are worth ₹42,000 crores and they have all been kept as surety to secure loans worth ₹1 lakh crores

#SupremeCourt #AGRDues @VodafoneIN

Rohatgi: We are barely afloat. Only way is to earn and pay

Court says the question is for the company to show its bona fide.

Justice Mishra: We want all the parties to come up and offer a reasonable plan for payment that can be worked out

#SupremeCourt #AGRDues @VodafoneIN

Justice Shah: You must deposit some amount.

Rohatgi: I have already paid ₹7,000 crores

Justice Shah: You must deposit some money, the government needs money for public welfare during this pandemic.
Your industry is the only industry that is making money during this pandemic.

Senior Counsel Arvind Datar for Tata apprises the Court now.

Datar: ₹36,504 crores paid by us so far.

@TataCompanies #SupremeCourt #agrcase

Datar details the due amounts to be paid by Tata and breaks down the calculation pointing out that licence fee due is a small fraction as compared to the penalty and interest on the same

@TataCompanies #SupremeCourt #agrcase

Justice Shah: You cannot argue this point now.

Datar clarifies indicating that nearly ₹37,000 crores has been paid

@TataCompanies #SupremeCourt #agrcase

Datar: Please consider that furnishing a bank guarantee may have an adverse effect on the investments in the sector

@TataCompanies #SupremeCourt #agrcase

Order: Supreme Court asks all the Telecom companies to file their books of accounts and all financial documents for the period of last ten years #SupremeCourt #agrcase

The case will be heard next in July.

#SupremeCourt #agrcase

[AGR] Submit books of accounts, financial documents of last ten years: Supreme Court to Telecom Companies; Govt to withdraw demand from PSUs [Read full story] @VodafoneIN @airtelindia @TataCompanies #SupremeCourt #AGR

bit.ly/2BkaR42

ORDER OF THE SUPREME COURT: "...and we have also requested to make payments of reasonable amount also to show their bonafides, before the next date of hearing..."

#SupremeCourtRuling #supremecourtofindia #SupremeCourt #agrcase