Indian Supreme Court's ego is coming in the way of peace between the government and telcos

• The Supreme Court has come down hard on the DoT and the telcos over AGR dues.
• The apex court has said that self assessment by teclos amounts to contempt of court.
• The SC has also threatened to send telco MDs to jail.

The Supreme Court came down hard on the Department of Telecom’s application to allow telcos to pay their spectrum dues over the next 20 years.

With uncharacteristically stern comments, SC said that it will send all teleco MDs to jail over non-payment of dues.

The SC said that it was “anguished” how its deadline for payment of AGR dues was not met and held that no further objections to its orders would be allowed against payable dues.

SC questions Centre, telcos on AGR dues assessment

The apex court said that this is public money that was unpaid for 20 years. It also dismissed the ‘self assessments’ by telcos and said that they account to contempt of court.

Firing off on the Centre, the SC asked who had allowed the telcos to do self-assessment of dues. The SC noted that it was the same government which fought tooth and nail to include penalty in the final order, and now it is wishing to do away with interest.

"If reassessment is permitted - it is fraud on this court," Justice Arun Mishra said.

Just yesterday Vodafone Idea deposited ₹3,354 crore in full payment of the principal amount. This is in addition to the ₹2,500 crore it had paid in February.

Airtel has so far paid ₹18,004 crore towards its dues. The total liability on Airtel stands at ₹36,000 crore while Vodafone Idea has to pay ₹53,000 crore.

‘Media and companies trying are influence the SC’

Taking serious cognizance of the telecom companies trying to change the terms of payment of AGR dues, the Supreme Court today threatened to draw contempt proceedings against the companies. It also said it will send all telco MDs to jail.

"All the newspapers are trying to influence courts. All the companies are trying to influence us through the media," said Justice Arun Mishra.

The top court said: "We will call all MDs of the telecom companies and send them to jail from here."

SC asks telcos if they are powerful

Further expressing its anguish, the Supreme Court asked the telecom companies if they are “more powerful”.

"This is a question of apex court prestige. Do companies feel they are more powerful on earth?" Justice Mishra asked in court today. DoT’s application yesterday was welcomed by the COAI, an industry association of telecom providers.

See also:

Govt formula on AGR payment incrementally positive for VIL, but uncertainty on dues looms

DoT's suggestion to give telcos 20 years for AGR payment to help resurrect industry: COAI

Vodafone Idea pays Rs 3,354 cr to govt in AGR dues, claims principal amount fully paid now