The Supreme Court has Adjusted Gross Revenue The petition of telecom companies for recalculation of AGR dues has been rejected. The result of which is that a significant decline is being seen in selected telecom companies. In fact, Bharti Airtel and Vodafone Idea were among those telecom companies that had filed a petition for rectification accusing the Department of Telecommunications of serious mistake in the calculation of the due amount.
Vodafone Idea The shares of Bharti Airtel are witnessing a massive fall of 15 percent. The stock price has reached Rs 10.93 per share. Vodafone Idea’s adjusted gross revenue dues are currently Rs 70,300 crore. On the other hand, Bharti Airtel’s stock has jumped 2.93%. Now telecom companies will have to pay Rs 92,000 crore to the government in 3 months.
The Supreme Court said in its decision that it has seen the curative petition and the related documents. The court also said that no case is made out on behalf of the telecom companies. Therefore, the petition is dismissed.
In fact, telecom companies had claimed that the Department of Telecommunications had made a mistake in the calculation of payment of license fees and spectrum charges.
AGR issue
Adjusted Gross Revenue or AGR is a mechanism of revenue sharing between the government and telecom operators. Under this mechanism, operators have to pay a fixed licensing fee and spectrum usage charges to the Department of Telecom. DoT calculates the fee as a percentage of AGR.