The Supreme Court, today morning, passed its judgement on the Adjusted Gross Revenue (AGR) matter. It allowed telecom companies (telcos) to clear their outstanding dues in 10 years from the earlier tenure of 20 years.
Telcos can pay 10% of their dues by 31st March 2021 and after that, instalments to be paid by 7th Feb of every succeeding year. Any default will accrue interest and non-payment will also invite contempt of court proceedings.
The companies have been ordered to keep adjusting bank guarantees alive till the time the payment is made.
On sale of spectrum by telcos, the SC left the decision to the National Company Law Tribunal (NCLT).
Telcos has sought more time; Vodafone had asked for 20-years and then scaled it down to 15. Bharti Airtel and Vodafone too had sought more time.
The question on whether or not Reliance Jio would have to pay dues to Reliance Communication for usage of its spectrum and ditto for Bharti for Aircel and Videocon is not yet spelled out.
Vodafone Idea is among the top three losers since the verdict came out, going down 24.5% to Rs.7.69 while Bharti Airtel surged almost 6.5% to Rs.546.70.