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AGR verdict today:
The most awaited 20 years-long case, was to be heard on 10th August 2020. Adjusted gross revenue i.e. (AGR) has proved to be burdensome for a few leading telecom companies. As per the last judgment on the AGR case dated 20th July 2020, Justice Arun Mishra stated that “All companies—RCom, Sistema Shyam Teleservices, Videocon to submit their Insolvency details within 7 days. Need to ensure IBC not being misused by companies to escape liabilities” and ordered the final judgment for this to be heard on 10th August 2020.
The Supreme Court bench led by Justice Arun Mishra, S Abdul Nazeer, and MR Shah heard the matter concerning payment for AGR dues by the telecom companies.
The court decided that it won’t consider any review for the assessment or recalculation of dues and stated that the only matter pending to be solved would be the due date before which the telecom companies need to clear their dues and insolvency matters.
Solicitor General Tushar Mehta representing the department of telecommunication (DOT), made comments regarding the ownership of the spectrum and stated that no one can own the spectrum as it is considered national property and not the company’s asset. SG Tushar Mehta further raised concerns regarding the delay in the decision on the sale of the spectrum is still under consideration. On which the court asked the reason behind the late filing by the government against the NCLT order.
SG Tushar Mehta submitted the amount of dues to be collected from all the telecom companies and said that Aircel's resolution plan is finalized whereas Reliance Communication (RCOM) resolution plan is about to be finalized. Senior lawyer Shyam Divan representing Reliance Communication commented that he is taking through the resolution process of RCOM.
Reliance communication went under IBC after it failed to pay the dues to its financial creditor one of which is Ericsson. The apex court raised concerns as to why the proceedings were initiated when the dispute between the payments of due to Ericsson by RCOM was settled and further stated that as the AGR dues are classified as operational in nature it will be given preference after the financial creditors.
Further, the court adjourned the case on 14th August 2020 and ordered that Reliance Communications insolvency case would be taken up on that date.
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