AGR Case: Another blow to telecom companies

The Supreme Court launched a witheringly scornful attack on the Department of Telecommunications (DoT) regarding inaction or not collecting a single rupee from telecom operators such as Bharti Airtel and Vodafone Idea India on their AGR (adjusted gross revenue) dues. In today’s hearing, the Supreme Court demanded how and when they are going to repay the dues and what security they can provide to guarantee payment. sell business
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However, the telecom department made a plea to grant a time period of 20 years and allow a staggering payout. Telecom department proposed this plea keeping in mind the condition of the companies and was worried that it may lead them to bankruptcy and closing doors of the company. Also, along with shattering operations, huge customer and employee base was also a salient concern. buy business
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Justice Arun Mishra, one of the judges, was displeased based on doubts that accompany the plea as to how they can guarantee the payment of dues. As reported, in response to this during the hearing, he said “nobody has seen the next 20 years, can't allow extension based on a "gentleman's promise". He emphasized that the court cannot allow staggered payout without securing government dues. Demanded undertakings will have to be there. Also, the court mentioned the companies not contributing to COVID-19 relief.  sell business india
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Telecom companies tried to assure them by putting their licenses at stack. They proposed that if they do not pay up within a given period, then the court can cancel their licenses. The companies were able to pay some amounts such as Bharti Airtel has already paid Rs 18,800 crore of the AGR dues as per DoT of Rs 35,500 crore, Vodafone has so far paid Rs 6900 crore out of Rs 53,000 crore that is claimed by DoT, but they are far away from repaying the entire due amount. buy business india
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In the prior hearings, companies pleaded for some relief in terms of time and amount, but the court rejected all their pleas and ordered on March 18 that no further arguments against the dues owed would be heard. 
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The other aspect around which the hearing revolved was based on the demands that were made from PSU’s (Public Sector Undertaking) such as ONGC and SAIL, etc. Demands worth Rs. 4 lakh crore was raised against PSU’s. The SC judge, Justice Mishra, was quite infuriated by this deed of government. He questioned the government about their intentions behind misusing their judgment and said: “Is the govt trying to overwhelm us by raising surcharge demands,". They clarified that judgment never dealt with PSU’s and there is a vast difference between the licenses of PSU’s and telecom companies. buy a company
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As a result of the hearing, the Supreme Court demanded that DoT should clarify raising demands from PSU’s within 3 days of the order. This brought relief to all the PSU’s involved. Also, the companies were asked to file an affidavit within 5 days but companies seek 2 weeks saying that they want to consolidate everything and make one final affidavit. The hearing was adjourned till June 18, 2020. buy business in india
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Today’s hearing had shaken the market showing fluctuations in the prices of these telecom companies. However, there was relief seen in that of the PSU’s such as GAIL and Oil India. If in the next hearing, the court agrees to the pleas of telecom companies, it might not only be a boon to them but also a relief to the banks that are involved with these businesses.  business brokers

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