Supreme Court Order DoT Asks Telecom Companies To Pay Dues; Airtel, Vodafone

The DoT, which confronted the ire of the Supreme Court for placing on maintain restoration of dues from telecom firms, began issuing circle or zone-wise demand notices to corporations.

New Delhi: After Supreme Court rap, the telecom division started issuing orders, directing firms akin to Bharti Airtel and Vodafone Idea to clear dues earlier than Friday midnight. The DoT, which confronted the ire of the Supreme Court for placing on maintain restoration of dues from telecom firms, began issuing circle or zone-wise demand notices to corporations, an order seen by PTI stated. The order issued on Friday by the UP (West) Telecom Circle requested “all telecom service providers” to clear dues by 11.59 pm Friday.

“With reference to subject cited above, you are hereby directed to make the payment of outstanding dues of licence fee and spectrum usage charges by 14.02.2020, 11:59 PM positively,” it stated. One of the telecom operators, who didn’t want to be named, confirmed the receipt of the stated order from the circle.

While in all, 15 entities owe the federal government Rs 1.47 lakh crore — Rs 92,642 crore in unpaid licence charge and one other Rs 55,054 crore in excellent spectrum utilization fees, it isn’t instantly clear simply how a lot of that has been sought by the federal government by midnight tonight.

The order issued the circle-based Controller of Communication Accounts got here after the telecom division earlier on Friday withdrew its order that requested for no coercive motion towards telecom firms defaulting on statutory dues cost.

The round was withdrawn by the telecom division instantly after the Supreme Court took a robust view of non-compliance in cost of dues by telecom firms. The DoT order issued to its subject places of work subsequently had requested for “immediate necessary action” in compliance with the October judgment of the Supreme Court.

The path by the DoT had stated its earlier order dated January 23, 2020 “stands withdrawn with immediate effect”. “It is directed to take immediate necessary action in compliance with the judgement dated October 24, 2019 of the Supreme Court,” stated the contemporary order issued by the DoT.

The Supreme Court on Friday directed the managing administrators and administrators of telcos and different corporations to elucidate why contempt motion be not taken towards them for non-compliance of its order to pay adjusted gross income (AGR) of Rs 1.47 lakh crore to the Department of Telecommunications.

Taking robust observe of the non-compliance of its order, a bench of Justice Arun Mishra, Justice S Abdul Nazeer and Justice M R Shah expressed anguish over the order handed by DoT’s desk officer, staying the impact of its verdict in AGR matter.

After the DoT order, Airtel has supplied to pay Rs 10,000 crore by February 20 and the remaining earlier than March 17, the following date of listening to within the Supreme Court. “Nevertheless, in compliance with the judgement of the Hon’ble Supreme Court and their direction today, we shall deposit a sum of Rs 10,000 crore (on account) by 20th February, 2020, on behalf of the Bharti Group companies,” Airtel stated in a letter to Member (Finance) on the DoT.

Of the three non-public gamers working within the Indian telecom market, Vodafone Idea is taken into account to be in probably the most susceptible place.

Vodafone Idea is watching dues value Rs 53,000 crore that features as much as Rs 24,729 crore of spectrum dues and one other Rs 28,309 crore in licence charge, and the corporate had earlier warned of shutdown if no reduction was given.

Vodafone Idea in its earnings assertion on Thursday had additionally sounded out warnings on “material uncertainty” casting “significant doubt” on its potential to proceed as a going concern.

VIL had stated on Thursday that the corporate’s potential to proceed as a going concern is basically depending on a constructive final result of its modification software within the Supreme Court on the AGR matter and any reduction from the telecom division on funds.

Last week, Vodafone Chief Executive Officer Nick Read had stated the scenario in India is important, following the AGR ruling of the Supreme Court. The British telecom main holds 45.39 per cent stake in VIL.

VIL had suffered staggering Rs 50,922 crore loss within the September quarter (highest ever loss posted by any Indian company), when it had made provisions for statutory dues following the Supreme Court’s order within the adjusted gross income matter, though its losses in December quarter narrowed to Rs 6,439 crore.

Rival Bharti Airtel’s liabilities added as much as practically Rs 35,586 crore, together with licence charge and spectrum utilization cost dues. But, Airtel had already stated that the previously-mentioned materials uncertainty on the group’s potential to proceed as a going concern “no longer exists” after the latest Rs 21,502 crore fund elevating by it.

Most of the remaining legal responsibility is with state-owned BSNL/MTNL and a few of the shut/bankrupt telecom firms.

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