17 - Sep - 2020

Hon'ble Supreme Court fires DoT for misusing it’s order and demanding Rs.4 lakh crore as AGR dues from PSUs.

A few months back, the Hon'ble Supreme Court ordered that, Airtel, Vodafone Idea and Tata Teleservices should pay Rs.1.3 lakh crore to the government as AGR (Adjusted Gross Revenue) dues. According to the Hon'ble Supreme Court, these telecom companies have paid lesser amount as license fee and hence should pay the arrears. However, the DoT misused this order of the Hon'ble Supreme Court and demanded Rs.4 lakh crore from the PSUs also. The DoT had thus demanded Rs.1.72 lakh crore from GAIL India, Rs.48,489 crore from Oil India, Rs.22,062 crore from Power Grid Corporation, Rs.15,019 crore from Gujarat Narmada Valley Fertilisers & Chemicals, and Rs.5,481 crore from the DMRC. 

 

This action of the DoT has angered the Hon'ble Supreme Court. In the hearing held on 11.06.2020, Justice Arun Mishra remarked that the government’s order to recover AGR dues from PSUs is a misuse of the Hon'ble Supreme Court order. The Hon'ble Supreme Court told that the action of the DoT is outright misuse of the Hon'ble Supreme Court verdict and directed to immediately withdraw the demand. 

[Source: ET Telecom, dated 12.06.2020]