SC dismisses telecom companies' plea seeking recomputation of AGR dues

New Delhi: In a big setback for telecom companies, the Supreme Court, in an interim judgement, on Friday rejected the petition filed by Bharti Airtel Ltd and Vodafone Idea Ltd requesting direction to correct alleged errors in Adjusted Gross Revenue (AGR) calculation.

A bench headed by Justice LN Rao referred to the earlier order passed by the apex court in the matter and observed that no re-assessment of AGR-related dues could be done.

However, in their plea, the telecom majors raised the issue of alleged errors in calculation in the figure of AGR-related dues demanded by the Department of Telecommunication (DoT).

The apex court had already said on Monday that it would pass its order on applications filed by -- Vodafone Idea, Bharti Airtel and Tata Tele Services Ltd -- alleging arithmetical errors in calculation of AGR dues payable by them.

The telcos submitted that arithmetical errors can be rectified and there are cases of duplication of entries.

In September last year, the Supreme Court had permitted the telecom companies to pay off the AGR dues in a staggered manner over 10 annual installments, starting from April 1, 2021. In the same order, the Supreme Court had prohibited any sort of re-assessment of the AGR dues.

Later, the three telecos moved the Court alleging that there calculation errors in the dues computed by the DoT. Senior Advocates Mukul Rohatgi, Dr Abhishek Manu Singhvi and Arvind Datar, appearing for Vodafone-Idea, Bharti Airtel and Tata Teleservices respectively, argued that the earlier order did not bar correction of calculation errors.

Rohatgi, representing Vodafone Idea, had submitted they were not blaming the Department of Telecommunications (DoT) for it, and there are arithmetical entries. Rohatgi added that they want to bring these errors to the attention of the department concerned for their rectification.He submitted that they were not seeking any extension of time.

Datar, representing Tata Tele Services Ltd, submitted rectification of errors in calculation can be done.

Solicitor General Tushar Mehta, representing the Centre, submitted he has not received any instructions from the DoT on allowing correction of errors.

The bench had said that it has said not just once, but twice and thrice that AGR demand can't be recomputed.

Singhvi, representing Airtel, said there are cases of duplication and also of payments made but not accounted for. He submitted, "I don't want to pay thousands of crores on account of these errors".

Mehta said he can take instructions on this within two days. "It may be a little hazardous for me to make statement without taking instructions..", said Mehta.