Bharti Airtel had a spectrum settlement with Videocon
New Delhi:
Bharti Airtel’s plea in opposition to the Centre’s demand that it pay the AGR (Adjusted Gross Income) dues of Videocon, will likely be heard by the Supreme Courtroom tomorrow. The agency, which is India’s largest cell provider, has a spectrum settlement with Videocon, so the Division of Telecommunications needs Airtel to pay Videocon’s dues. Videocon owes the federal government Rs. 1376 crore.
Airtel had entered a Rs 4,428 crore deal to buy spectrum owned by Videocon Telecommunications in six circles — Bihar, Haryana, Madhya Pradesh, Uttar Pradesh (East), UP (West) and Gujarat — in March 2016.
Airtel, nonetheless, questioned the Centre’s demand for Videocon’s AGR, saying it couldn’t be held chargeable for the corporate’s previous dues.
The telecom division then went to court docket. In April this yr, the federal government advised Supreme Courtroom that it had raised the demand in compliance with an earlier order of the court docket, however acquired a damaging response from Airtel.
Throughout a listening to in September 2020, the highest court docket had stated that in keeping with spectrum buying and selling tips, AGR dues have to be met earlier than buying and selling of licenses and if the vendor couldn’t pay, the customer should step up.
Reviews stated after Airtel’s transfer, the telecom division took authorized views on encashing the corporate’s financial institution assure to boost the dues of Videocon.
At the moment, if a telco fails to pay its quarterly licence or spectrum-related dues, then the financial institution ensures are with the telecom division are encashed. The financial institution ensures are additionally periodically replenished.
Final yr, the Supreme Courtroom had refused to cease the federal government from taking coercive motion in opposition to telcos to boost AGR dues. The court docket made it clear it won’t hear “even for a second” the arguments on reassessment or re-calculation of the AGR associated dues of telecom corporations, which run to round Rs 1.6 lakh crore.
In a subsequent listening to, the court docket additionally requested the telecom division the way it plans to get better the AGR-related dues from corporations dealing with insolvency proceedings and whether or not spectrum given to those corporations might be bought.
The telecom division advised the court docket that spectrum is owned by the nation, held in belief by the federal government and can’t be bought.
“Telecoms do not personal spectrum, contract permits solely its use,” the division stated. Spectrum can’t be subjected to IBC (Insolvency and Chapter Code) proceedings both, it stated.
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