InvestorQ : What is the final stand of the Supreme Court on the AGR issue involving telecom companies?
Lavanya Subramanian made post

What is the final stand of the Supreme Court on the AGR issue involving telecom companies?

Answer
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Anamika Sodhani answered.
1 month ago


There is no final judgment still but on 20 August the Supreme Court observed that the bankruptcy process of RCOM, Aircel and Videocon would completely wipe out adjusted gross revenue AGR-related dues that these telecom firms owe to government.

The counsel to creditors of Aircel mentioned that dues of banks would be on par with the government, which allowed spectrum as security used by banks to disburse loans to telecom operators. The government cannot back track just to recover dues.

Bharti Airtel Ltd shares its spectrum with Tata Teleservices Ltd so the onus will now be on consistency. In short it is getting a lot more complicated.