SC Frowns On DoT For Allowing Re-assessment Of Telecom Firms' AGR Dues

The Supreme Court on Wednesday, while refusing to reconsider any suggestion from the government on reassessment of adjusted gross revenues (AGR) dues owed by telecom companies, called the exercise of undertaking self-assessment by the companies, a fraud on the court. The Centre had sought a 20 year period over which companies could stagger their payments.

What is AGR?

Licence fee and spectrum charges constitute the revenue share to be contributed by telecom operators to the Centre. The amount which is used to compute the revenue share is described as Adjusted Gross Revenue (AGR).

The judges called it contempt and a matter related to its prestige. The apex court observed that if reassessment was to be permitted, it would amount to a fraud on the top court.

SC Takes A Stern View

The Supreme Court directed the Department of Telecommunications (DoT) to withdraw its plea. DoT's notion of self-assessment is sheer violation of the court's orders, the Bench said. The apex court also pointed a finger at the media for misleading the country with regard to its verdict.

Justice Arun Mishra warned that "if required, we will summon MDs of all the telecom companies and send them to jail from here."

Centre's Revised Stance

The Centre, in its petition, submitted that these companies which were required to pay up dues, were serving millions of consumers in the country. The Centre averred that any adverse impact (of short-term nature) on the working of the telecom service providers would have a negative impact on the economy of the nation and would also impact the interests of the consumers in the country.

The court retorted that it's public money which someone is trying to pocket. It questioned whether DoT thought this was excessive! The Supreme Court pointed out that it was the government which in the first place, fought for penalties previously in its arguments before the Bench.