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Telcos asked to pay AGR dues immediately
Why is it in the news?
- The Supreme Court ordered the managing directors and directors of companies, including telecom majors Bharti Airtel and Vodafone Idea, to show cause why contempt proceedings should not be initiated against them for failing to pay even a “single penny”.
- The penalty has to be paid to the government in Adjusted Gross Revenue (AGR) dues, worth Rs. 1.47 lakh crore.
More in the news
- In October 2019, Supreme Court had upheld the Department of Telecom’s move to recover adjusted gross revenue (AGR) of about Rs. 92,000 crore from telcos.
- What is AGR Issue?
(1) Telecom operators are required to pay licence fee and spectrum charges in the form of ‘revenue share’ to the Centre.
(2) The revenue amount used to calculate this revenue share is termed as the AGR.
(3) According to government, the calculations should incorporate all revenues earned by a telecom company.
(4) All revenues including from non-telecom sources such as deposit interests and sale of assets.
(5) The companies, however, have been of the view that AGR should comprise the revenues generated from telecom services only and non-telecom revenues should be kept out of it.
(6) Finally, the Supreme Court upheld the government's definition of adjusted gross revenue (AGR) in October judgment.
Source
The Hindu.