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Supreme Court adjourns AGR case hearing to Friday at 2pm: Here are the main highlights

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Here are the main highlights from the Supreme Court hearing on the AGR payments dues case from telecom companies today

Supreme Court adjourns AGR case hearing to Friday at 2pm: Here are the main highlights
The Supreme Court on Thursday adjourned the hearing on the issue of adjusted gross revenue (AGR) dues from telecom companies to Friday at 2 pm. While during the hearing, the apex court said it is worried that almost all of the dues from telcos could be wiped out under the ongoing IBC process.
Here are the main highlights from the Supreme Court hearing on the AGR payments dues case from telecom companies today:
  • The Supreme Court has adjourned the hearing in the AGR dues case to Friday at 2 pm.
  • NK Kaul appearing for Videocon Telecom's resolution professional:
  • DoT put AGR dues at Rs 1512 crore. Business is nil as of now, resolution process on. Spectrum transferred to Bharti Airtel in 2016. Justice Mishra asks SG to reply if Bharti Airtel has undertaken to pay spectrum liability.
  • Ranjit Kumar: Banks will be at loss and it would be against the resolution process provided for under IBC. My lords must consider this at this stage. IBC is a whole statute. He concludes for lenders of Aircel.
  • Ranjit Kumar says that the banks and government need to coexist. “Government uses proceeds for the public, banks use it for economic purposes — such as advancement of loans. Let's not forget, the economy is also in strain.”
  • Since Monday, Vodafone Idea's share price slipped 2.76 percent while Bharti Airtel rose 0.75 percent, to current levels. Meanwhile, Reliance Communications' shares surged 12.24 percent. Read more
  • Ranjit Kumar for COC for Aircel addressing the court on rights of telcos to transfer the right to use the spectrum, as recognised under the tripartite license agreement.
  • Ranjit Kumar for COC for Aircel: Payment to banks after payment of AGR dues would be a violation of IBC. If the govt allowed spectrum as security, Govt can't backtrack now. Even the Ministry of Corporate Affairs has sought for spectrum sale under IBC.
  • Ranjit Kumar for COC for Aircel: Banks' dues are the same as AGR dues for Aircel. If all proceeds are used to satisfy AGR dues, banks dealing with public money will also not get anything.
  • Ranjit Kumar for COC for Aircel: Spectrum is the raw material for telcos. By not allowing the spectrum sale, SC will push all the insolvent companies into liquidation.
  • Ranjit Kumar for COC for Aircel: The requirement to pay AGR is entirely contractual. The tripartite agreement recognises the spectrum as security before banks. The payment of dues to a company shall be decided under the law of land - IBC.
  • Ravi Kadam concludes for the Monitoring Committee of Aircel. Former Solicitor General Ranjit Kumar begins for COC of Aircel.
  • SC observes: Spectrum trading is different from the sale of the spectrum in IBC. Without paying for the horse, operators are taking a ride. Unless and until dues are paid, nobody can start using the spectrum. Can a liability like AGR be wound up in this fashion, under the guise of selling spectrum under IBC.
  • SC observes: We are extremely worried that almost all of the entire AGR dues will be wiped out in the IBC process. And after the sale of the spectrum, the new user will have extinguished any pending demand against the spectrum in question.
  • Important: Monitoring Committee of Aircel admits that less than 1 percent of AGR dues will be paid as per approved resolution plan.
  • Ravi Kadam for Aircel Monitoring Committee to SC: Resolution process has concluded, UVARC plan has been approved. DoT applied as operational dues, recognised by COC. COC has approved the plan, following the IBC. Not even 1 percent of the AGR demand will be paid. DoT was a part of the COC meetings.
  • SC observes: What has happened to AGR dues? How much has been paid?
  • Ravi Kadam for Aircel Monitoring Committee to SC: The right to use the spectrum is an asset. To keep the company as a going concern, the right to use will be monteised upon approval of the resolution plan. Resolution applicant is UVARC.
  • SC observes: Is Aircel looking to sell spectrum under IBC?
  • Readers can also follow live updates on CNBC-TV18's twitter handle as well.
    • Kapil Sibal for Airtel to SC: Have paid all relevant dues with respect to spectrum trading, have paid 18004cr of AGR dues.
    • Justice Mishra asks SG for DoT: First, how much has been used by Airtel and whether they have paid in terms of 1999 guidelines as on date? Second, from which date Rcom began sharing spectrum with Rjio. The apex court said we want everything basis licence. We want details from DOT of spectrum allocated to R.Comm, Aircel since 1999. We want details of all instances of spectrum sharing.
    • SC observes: Has Airtel paid AGR dues for spectrum bought from Aircel?
    • Ravi Kadam for Aircel Monitoring Committee to SC: No instance of spectrum sharing with any operator by Aircel.
    • In response, Justice Mishra asks: Was Aircel holding the licence from 1999?
    • Ravi Kadam for Aircel Monitoring Committee to SC: From 8 April 2016, there have been 8 instances of spectrum trading with Bharti. DoT had approved the sale, had raised the demand for dues.
    • Senior Advocate Ravi Kadam, appearing for Monitoring Committee of Aircel begins, addressing the Justice Arun Mishra led bench: Filed an affidavit on behalf of the Monitoring Committee of Aircel.
    • Supreme Court hearing commences on the matter pertaining to payments of Adjusted Gross Revenue (AGR) by Telecom Companies.
    • AGR hearing to begin shortly. Monitoring Committee of Aircel to address the SC on sale of spectrum. Senior Lawyers Harish Salve, Ranjit Kumar have joined. Waiting for Justice Arun Mishra led bench to assemble. Hearing was scheduled at 2PM.
    • On Wednesday, the apex court asked two key issues:
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