Government bats for Telecom firms in Supreme court over payment of dues

mangaloretoday/ yahoo

New Delhi, March 16, 2020: A 20-year window should be given to telecom firms to pay their AGR dues, the Centre has argued in Supreme Court today, backing the loss-making telcos which have been pushing for more time following a top court order for immediate payment.

"The judgment of the Supreme Court has translated into huge amounts becoming payable. It would have inevitable consequences that won’t be in anyone’s interest," the government said, pointing out that the telcos have already made part payments.

Debt-ridden telecom firms have partially paid the Rs 1.47 lakh crore they owe to the telecom ministry, after the Supreme Court accused their bosses of contempt and ordered them to appear in court.

In the hearing last month, the top court had ripped into the firms and the government over the unpaid dues. The court’s wrath was magnified over the fact that it happened despite its order of October, when it upheld the telecom department’s demand that wireless carriers pay Rs 92,000 crore, and gave telecom operators three months to clear the dues.

In January, it rejected the companies’ appeal to review the decision.

Today, the government said it has examined the issue and have given "serious consideration" to the market economy of the sector.

"Any one major telecom operator being pushed into bankruptcy could have severe adverse impact," the government said. "Any immediate adverse impact on the functioning of telcos will hurt not just the economy, but also the interest or crores of consumers," it added.