AGR
- September 2, 2020
- Posted by: OptimizeIAS Team
- Category: DPN Topics
No Comments
Subject: Economy
Context:
The Supreme Court Tuesday held that telecom firms will get 10 years to clear their adjusted gross revenue or AGR dues
Concept:
- All the telecom companies that operate in India pay a part of their revenues as licence fee and spectrum charges to the Department of Telecommunications (DoT) for using the spectrum owned by the government.
- In its definition of AGR, the DoT had said that telcos must cover all the revenue earned by them, including from non-telecom sources such as deposit interests and sale of assets.
- The telecom companies were opposed to this and had challenged this definition of AGR in several forums, including the Supreme Court.
- On October 24, 2019, the SC had upheld the DoT’s definition of AGR and said since the licensee had agreed to the migration packages, they were liable to pay the dues, the penalty on dues, and the interest on penalty due to delay in payments.