SC Defers AGR Case To July Third Week; Ask Telcos To Furnish Audited B/S Of 10 Yrs

In the hearing on AGR dues case, the Supreme Court today deferred the case for next hearing in July third week. Meanwhile has asked telcos to furnish last 10 years audited balance sheet as also the payment proposal for considering staggered payment of AGR dues.

SC Defers AGR Case To July Third Week; Ask Telcos To Furnish Audited B/S Of 10 Yrs

Also, the Supreme Court noted that as the PSUs are not in telco business, the department of telecom has done away with 96% of the demand claims of more than Rs. 4 trillion made against PSUs.

The direction comes as the telcos sought 20 year timeline to clear AGR dues without any personal or bank guarantees.

Also, the honorable court observed that during the period of the lockdown the telecom industry was the only one doing business and there should be a consideration or provision for down payment for allowing staggered payment.

Meanwhile, during the hearing Vodafone's Counsel made a point that the company is not in a position to serve any guarantee as it is not making profits for past several quarters. So, the court asked the company of its assets. In an earlier instance the company said that spectrum and licenses would be the best security against the dues payable by the company.

Also, the company said that if asked to clear the dues by tomorrow, the company will have to wind up.

So, far the company has cleared Rs. 7000 crore in AGR dues. Analysts say Airtel, which has paid up Rs18,000 crore of its Rs44,000 crore dues is in a better position to provide bank guarantees on the premise that is on a fund raising spree and has been boosting its balance sheet.

Also, Airtel refused to serve any bank guarantee and said DOT already has Rs. 10800 crore while seeking 20 year timeframe for clearing the payment.

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