Govt rules out AGR waiver for Vodafone Idea, Bharti Airtel; SC rejects review pleas
New Delhi: In a major disappointment for Vodafone Idea and Bharti Airtel an Adjusted Gross Revenue (AGR) waiver is no longer under consideration, CNBC-TV18 reported citing government sources.
Government sources have confirmed that the proposal for waiving AGR penalties and interest is no longer being considered, the news organisation reported.
The Cabinet Secretariat has communicated this decision to the Department of Telecommunications (DoT).
The DoT had floated a proposal to waive 50% of interest, 100% of penalties, and 100% of interest on penalties.
The DoT was hoping to provide relief to the telecom sector through the waiver of AGR dues.
This comes after the Supreme Court, through multiple decisions, upheld the AGR dues payable by Airtel and Vodafone Idea.
Last month, the apex court dismissed review petitions filed by Vodafone Idea and Bharti Airtel, seeking corrections in the calculation of AGR dues.
A three-judge bench comprising Chief Justice of India Sanjiv Khanna, Justice Abhay S. Oka, and Justice Sanjay Kumar ruled that no case for review of the July 23, 2021 order was made out, thereby rejecting the pleas.
"Pending applications, if any, shall stand disposed of," the court said.
The telecos had contended that the DoT made significant errors in computing the AGR dues, including failing to account for payments already made and incorporating non-core revenues.
Vodafone Idea, in its plea, argued that these "glaring errors" had resulted in an unjustified financial burden of approximately Rs 25,000 crore.
However, with the Supreme Court's refusal to allow corrections, the telecom companies are left with no further legal avenues, said the report.
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