AGR verdict: COAI seeks 10 years to pay dues with 2-year moratorium

In a letter to Telecom Minister Ravi Shankar Prasad, the Cellular Operators Association of India (COAI) on Thursday asked for a ten-year staggered payment scheme with a two-year moratorium to pay the amount stipulated by the Supreme Court's Adjusted Gross Revenue (AGR) verdict. However, it has requested Department of Telecommunications (DoT) to waive off interest, penalty and interest on the penalty, which has been imposed by the Supreme Court of India in its order as a result of which, the total amount that they have to fork out is Rs 133,000 crore.

In an addendum to its previous letter asking for waiver of the entire disputed amount, COAI argued that the government 'waive off the interest, penalty and interest on penalty'.

It has also argued that as the disputed amount goes back to accumulation over 14 years, the principal repayment of past dues be done over ten years, with a two-year moratorium as well. A copy of the letter has also been sent to DoT secretary Anshu Prakash.

In a blow to telecom operators, the Supreme Court on October 24 rejected their plea to revise the government’s definition of adjusted gross revenue (AGR) and refused to give them any relief on their pending payment of close to Rs 50,000 crore.

Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel