38.6c New Delhi, India, Friday, August 08, 2025
Top Stories Supreme Court
Political NEWS Legislative Corner Celebstreet International Videos
Subscribe Contact Us
close
Business

Supreme Court Directs Airtel To Move To Alternate Forum For Videocon Dues

By Shahista Ansari      26 August, 2021 12:27 PM      0 Comments
Supreme Court Directs Airtel To Move To Alternate Forum For Videocon Dues

On Tuesday, 24th August 2021, the Supreme Court allowed Bharti Airtel to move to an alternate forum against the directions issued to it by DOT(department of telecommunications) to pay the AGR (adjusted gross revenue)dues of Videocon Telecommunications ltd.

Videocon had sold its spectrum to Airtel in 2016. The issue arises from the interpretation given by the Supreme Court in its October 2019 judgment to the term "Adjusted Gross Revenue" in the spectrum licensing agreements between telecom companies and the DoT. The license fee is computed based on AGR. 

The Supreme Court held that 'AGR' includes revenue from non-telecom operations of the companies like rent, profit on sale of fixed assets, dividend and treasury income. This resulted in an additional liability to the tune of Rs 92,000 crores on the telecom companies collectively.

A bench comprising of  justices L NAGESWARA RAO,ABDUL NAZEER,MR SHAH has been set up to hear the plea filed by Bharti Airtel to restrain the Department of Telecommunications from demanding AGR (adjusted gross revenues)dues of Videocon ltd from it.

Senior advocate Shyam Divan,appearing for Airtel submitted that according to the spectrum trading guidelines the liabilities of a telecom company before the sale of its spectrum are to be borne by it only and not by the subsequent purchaser. Therefore, the AGR dues of Videocon before it sold its spectrum to Airtel cannot be recovered from Airtel. 

Divan pointed that the order passed by the Supreme Court in September 2020 had also stated that the dues of a telecom service company existing before the sale of spectrum are to be borne by the seller and not the buyer.

Another point raised by Divan was that by adding the dues of Videocon to the demand made from Airtel, the DoT has violated the Supreme Court's order that AGR dues cannot be recalculated or reassessed.

Therefore the bench said that it will grant liberty to Airtel to move any other alternate forum to redress its grievances. Responding to a query from the bench, Divan said that the alternate forum will be the Telecom Disputes Settlement and Appellate Tribunal(TDSAT).


But the solicitor general Tussar Mehta submitted that it is the case of the DoT that the TDSAT has no jurisdiction to deal with the matter. He requested the bench to keep all contentions open.


Divan also sought for an order restraining the DoT from invoking the bank guarantees. In this regard, he submitted that Airtel has paid so far over Rs 18,000 crores, which is more than 10% of its total AGR dues to the tune of Rs 45,000, which it had to pay by March, 2021 as per the Supreme court order. 

 CONCLUSION

Ultimately, the bench allowed Airtel to withdraw the application with liberty to approach the alternate forum, and restrained the DoT from invoking its bank guarantee for 3 weeks starting from Tuesday 24th august 2021. 
 



Share this article:



Leave a feedback about this
TRENDING NEWS

in-house-procedure-had-legal-sanctity-sc-dismisses-justice-varmas-plea-against-recommendation-for-removal
Trending Judiciary
'In-house procedure had legal sanctity,' SC dismisses Justice Varma's plea against recommendation for removal

SC upholds in-house probe into Justice Varma, dismisses his plea against removal; says process is legally valid and judge’s conduct lacked credibility.

07 August, 2025 12:05 PM
sole-testimony-of-victim-even-without-medical-evidence-sufficient-to-uphold-rape-conviction-sc
Trending Judiciary
Sole testimony of victim even without medical evidence sufficient to uphold rape conviction: SC [Read Judgment]

SC: Victim’s sole testimony, even without medical evidence, sufficient to uphold rape conviction if found credible and consistent.

07 August, 2025 03:11 PM

TOP STORIES

bengaluru-court-convicts-ex-mp-prajwal-revanna-in-rape-case
Trending Judiciary
Bengaluru court convicts ex MP Prajwal Revanna in rape case

Bengaluru court convicts ex-MP Prajwal Revanna in rape case linked to explicit videos; one of four sexual abuse cases filed against him.

04 August, 2025 11:07 AM
sc-sets-aside-order-declaring-man-as-juvenile-on-basis-of-school-certificate
Trending Judiciary
SC sets aside order declaring man as juvenile on basis of school certificate [Read Judgment]

SC: School certificate from private school not valid proof of age, sets aside order declaring murder accused as juvenile.

04 August, 2025 11:24 AM
hp-may-vanish-in-thin-air-god-forbid-sc-on-ecological-imbalance-in-himachal-pradesh
Trending Judiciary
‘HP may vanish in thin air, God forbid', SC on ecological imbalance in Himachal Pradesh [Read Order]

SC warns HP may vanish due to ecological imbalance; seeks state’s action plan amid rising disasters, deforestation, and climate change threats.

04 August, 2025 11:31 AM
sc-grants-4-weeks-time-to-centre-to-frame-guidelines
Trending Judiciary
SC grants 4 weeks time to Centre to frame guidelines to ensure pedestrians right to use footpath

SC gives Centre 4 weeks to frame guidelines ensuring pedestrians’ right to obstruction-free, accessible footpaths under Article 21.

04 August, 2025 11:41 AM

ADVERTISEMENT


Join Group

Signup for Our Newsletter

Get Exclusive access to members only content by email