New Delhi, August 20
Expressing concern over non-payment of the Adjusted Gross Revenue (AGR) associated dues by the telecom corporations that are underneath insolvency, the Supreme Court on Thursday stated “without paying for the horse, telecos are taking a ride”.
The apex courtroom stated it’s “extremely worried” that nearly the whole AGR dues will likely be “wiped out” within the IBC course of.
A Bench of Justices Arun Mishra, S Abdul Nazeer and MR Shah stated spectrum buying and selling is altogether totally different from sale of spectrum underneath the IBC.
APEX COURT’S OBSERVATION
- The SC puzzled can a legal responsibility like AGR-related dues be wound up, underneath the guise of promoting spectrum underneath the Insolvency and Bankruptcy Code
- The Bench stated it needs particulars from DoT of spectrum allotted to Reliance Communication and Aircel since 1999
“Without paying for the horse, telecs are taking a ride. Unless dues are paid, nobody can start using the spectrum. Can a liability like AGR be wound up, under the guise of selling spectrum under the IBC,” the Bench stated.
It additional noticed, “We are extremely worried that almost entire AGR dues will be wiped out in the IBC process”.
The Bench stated after the sale of spectrum, the brand new person will extinguish any pending demand towards the spectrum in query.
During the listening to, senior advocate Ravi Kadam, showing for Aircel Monitoring Committee, instructed the Bench that from April 8, 2016, there have been eight situations of spectrum buying and selling with Bharti Airtel.
He stated the Department of Telecom (DoT) had permitted the sale and had raised demand for the dues.
Kadam stated there are not any situations of spectrum sharing by Aircel with any operator.
The Bench requested Kadam what has Aircel going into decision proceedings obtained to do with the AGR dues.
It questioned whether or not Airtel has paid AGR dues for spectrum purchased from Aircel.
Senior advocate Kapil Sibal, showing for Airtel, stated the corporate has paid all related dues with respect to spectrum buying and selling and have paid Rs 18,004 crore in the direction of AGR dues.
The Bench stated it needs particulars from DoT of spectrum allotted to Reliance Communication (RCom) and Aircel since 1999. — PTI