The bench led by Justice Arun Mishra pronounced its verdict, laying down the timeframe for telecom companies to clear their dues.

Tuesday, the Supreme Court allowed telecommunications companies to split 10 years into their adjusted gross income (AGR) dues. By 31 March 2021 the Supreme Court bench headed by Justice Arun Mishra and made up of S Abdul Nazeer and MR Shah also ordered telecommunications firms to pay 10% of duties. The Central Government had proposed a 20-year payment schedule. 

The court of appeal stated that the 10 years schedule to pay AGR duties starts from 1 April 2021, while payments are due in payments until 31 March 2031. By 7 February each year, telecom companies will have to clear their dues and the failure to pay duties will lead to a disregard for the courts.

In four weeks' time, the Supreme Court ordered the managing directors of the telecoms companies to give personal guarantees and disregard the telcos. 

Tata Telecom had told the court that payment of dues would be required at least 7-10 years, while Vodafone-Idea and Bharti Airtel proposed payments in 15 years. During the hearings, Tata Telecom had told it. However, the telecommunications department (DoT) remained within 20 years of the payment proposal by the Union Cabinet.

On 20 July, the three-judge bench had reserved its order for the phased payment of dues and had adopted the question of company spectrum licenses. 

The Court also stated that the National Law Tribunal of the Company shall decide on the question of the sale of the spectrum by telecoms faced with insolvency proceedings. 

The Top Court of India agreed to a ten-year payment plan for telecommunications companies to clear the 1,4 trillion ($19 billion) combined fee, a ruling that would prevent Vodafone Idea Ltd's cash strung collapse.

The Supreme Court of Justice on Tuesday rejected, but permitted the federal government to collect payments, the 20-year payment deadline, as proposed by Primer Minister Narendra Modi's administration and supported by telecoms companies. 

Bharti Airtel and Vodafone Idea, who was struggling with growing losses, should be relieved. In December, Kumar Mangalam Birla, Vodafone Idea chairman, warned of the insolvency of the company. 

In the AGR verdict, the telecoms stocks have traded mixed. A mild rally has taken place at Bharti Airtel, RCom, and BSE 15% of Vodafone Ideas.

Summary

Top Court Gives Telecom Firms 10 years to pay Dues, Contempt If Default. The Central Government had proposed a 20-year payment schedule. Failure to pay duties will lead to a disregard for the courts.

The Top Court of India agreed to a ten-year payment plan for telecommunications companies to clear the 1,4 trillion ($19 billion) combined fee. In December, Kumar Mangalam Birla, Vodafone Idea chairman, warned of the insolvency of the company. A mild rally has taken place at Bharti Airtel, RCom, and BSE 15% of Vodaphone Ideas.