SC rejects plea by telecom operators seeking more time to settle AGR dues.
In a major setback for the telecom companies, the Supreme Court today rejected a plea by telecom operators seeking more time to settle AGR dues and began contempt proceedings against the companies.
The court summoned Managing Director, Director of all telcos on March 17th to explain why these dues were not deposited despite orders and why contempt action must not be taken against them for non-compliance of order.
Earlier on January 16th, a bench headed by Justice Arun Mishra had dismissed review petitions of telecom firms seeking review of its earlier order asking them to pay ?1.47tr in statutory dues by January 23rd, saying it did not find any "justifiable reason" to entertain them. [Livemint]
Shares of Voda Idea plunged 25% on the news, while Airtel share price gained 4%.
Vodafone Idea reported widening of losses to ?6,438.8cr ($904m) in Q3 vs ?5,004.6cr ($702m) a year ago, on the back of concerns about the telecom operator’s ability to remain in business.
Staring at statutory dues of ?53,000cr ($7,442m) it needs to pay to the government. Confronted by these liabilities - ?24,729cr ($3,472m) of spectrum dues and another ?28,309cr ($,3975m) in licence fee—it had previously warned of shutdown if no relief was granted. [Firstpost]
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