Telcos’ plea: No reassessment of AGR dues, says SC

“You (telcos) all are saying the identical factor. You say there are arithmetical errors and also you be permitted to go to the federal government to get that corrected,” it mentioned.

The Supreme Court docket on Monday mentioned it’ll cross orders on the plea of telecom operators – Bharti Airtel, Vodafone Idea, and Tata Teleservices – in search of rectification of arithmetical errors within the calculation of their adjusted gross income (AGR) dues, however reminded them that its earlier order on the matter has dominated out any recomputation of the dues.

Observing that the apex court docket had not simply as soon as, however twice, thrice acknowledged that the AGR demand can’t be recomputed, a bench led by justices LN Rao, SA Nazeer and MR Shah mentioned the judgment of September 1, 2020, had clearly spelt out that there will probably be no reassessment of the dues.

“You (telcos) all are saying the identical factor. You say there are arithmetical errors and also you be permitted to go to the federal government to get that corrected,” it mentioned.

As is understood, Bharti Airtel and Vodafone Concept had earlier this yr moved the SC in search of modification of its September 1 order in order that the division of telecommunications (DoT) can take into account their submissions concerning arithmetical errors within the calculations concerning their AGR dues.

The businesses have claimed that they weren’t in search of reassessment of their dues however had been merely in search of a recalculation, as they worry numerous clerical errors might have crept in protecting data of fee that had been made throughout 20 years at a number of places of work throughout the nation.

These functions come up out of the September order that granted 10 years time to the operators to clear their AGR dues to the DoT from April 1, 2021 until March 31, 2031. The apex court docket had additionally requested the telcos to pay 10% of their dues upfront. It had additionally clarified that no revaluation of AGR dues could be allowed and any default would invite curiosity, penalty, together with contempt of court docket orders.

Whereas DoT had estimated that Bharti Airtel owed `43,980 crore, Airtel’s personal estimate put the dues at `13,004 crore. For Vodafone Concept, the numbers had been `58,254 crore in opposition to its self-assessment of `21,533 crore, whereas for Tata Teleservices, DoT estimates pegged the quantity at `16,798 crore in opposition to its personal calculation of `2,197 crore.

The operators instructed the court docket on Monday rectification is totally different from reassessment or recalculation of AGR dues. Nevertheless, DoT was hesitant to revise its raised demand or rectify errors until allowed by the apex court docket.

Bharti Airtel had claimed that the surplus demand as a consequence of these errors was to the tune of `5,932 crore of principal quantity, which might have an general impression of over 4 instances on the entire principal quantity as a consequence of imposition of curiosity, penalty and curiosity on penalty. Its senior counsel AM Singhvi instructed the court docket that the corporate was absolutely compliant with the order and had paid over 10% of its pending AGR dues of over `18,000 crore.

Submitting that its funds and deductions not thought of by the DoT had been “purely by oversight,” the corporate made it clear that it will probably’t be requested to pay the quantity once more as a consequence of errors.

Claiming that it was not blaming the DoT or in search of a assessment of the court docket verdict, Vodafone Concept additionally mentioned it was not in search of any reassessment of the calculations, however solely in search of correction in these arithmetical errors. Terming “rectification” as a matter of proper in any evaluation or reassessment, Tata Teleservices mentioned the judgment solely prohibited reassessment and never rectification of calculative errors.

Nevertheless, solicitor common Tushar Mehta knowledgeable the SC that he had not obtained any directions from the DoT on claims of “arithmetic errors” in AGR calculations.