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Supreme Court adjourns hearing on telcos under insolvency to August 14

The Supreme Court on Monday adjourned the hearing on telecom companies under insolvency to August 14

twitter-logoBusinessToday.In | August 10, 2020 | Updated 17:03 IST
Supreme Court adjourns hearing on telcos under insolvency to August 14
AGR case

The Supreme Court on Monday adjourned the hearing on telecom companies under insolvency to August 14. The apex court said that the government must come prepared with a recovery plan of dues from the telcos under insolvency. However, the verdict related to the timeline of payment of AGR dues is still awaited.

A Supreme Court bench comprising Justices Arun Mishra, S Abdul Nazeer and MR Shah is hearing the case. "We want to go into the cause of initiation of insolvency for telcos under IBC. We want an understanding of their outstanding liabilities, urgency in pushing for insolvency," Justice Arun Mishra was reported as saying by CNBC TV-18.

The bench said that it wants to know the cause of initiation of insolvency for telcos under IBC, and also if there was any urgency by telcos in pushing for insolvency.

On July 20, the SC had reserved its order on permitting telecom companies to make staggered payments of AGR dues over 15 years.

The three-judge bench had last month said that there would be no reassessment of the AGR dues calculated by the department of telecommunications (DoT). The Supreme Court had then said there is "no going back" on the Department of Telecommunications (DoT) demand on the AGR issues and it will only consider the timeline.

During the last hearing, Vodafone had revised the demand to 15 from 20 years after the Supreme Court said that telcos should seek a reasonable time for payout as 20 years is too long a period. Bharti Airtel had requested for a 15-year window to clear the dues.On October 24, the apex court had upheld the government's broader definition of AGR.Also read: Defence Minister Rajnath Singh to launch 'Atma Nirbhar Bharat Saptah' today

Also read: US tech giants plan pushback against India's data-curb plan

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