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    Supreme Court adjourns AGR dues case hearing to August 24: Key highlights

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    Supreme Court adjourns AGR dues case hearing to August 24: Key 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

    The Supreme Court on Friday adjourned the hearing on the issue of adjusted gross revenue (AGR) dues from telecom companies to August 24, Monday.  During Friday's hearing, the main point of the arguments centered around the spectrum as an asset for the telecom companies, its sale and related rights. Earlier on Thursday, the apex court expressed concern 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 AGR hearing to August 24.
    • Shyam Divan, appearing for Resolution Professional of RCom, addressing the Justice Arun Mishra led bench of SC.
    • Kapil Sibal to SC: Spectrum is recognised as an asset, it is the most valuable asset with telcos. Spectrum is taken as security by the lenders. If SC refuses to recognise the sale of the spectrum, banks will stop lending to telcos, will grievously hurt the telecom sector.
    • Salve for R.Com COC: SC holding that the spectrum CAN'T be sold, will not help recover the AGR dues. If the spectrum sale is not allowed, it will be returned to DoT, auctioned for future use, won't help recover AGR. The issue of the sale of the spectrum should be left to NCLT.
    • Salve for R.Com COC: In the NCLT, DoT is challenging the resolution plan on the ground that the spectrum can be sold. Our understanding is that the spectrum can be sold, not allowing the sale will not help anyone.
    • Kapil Sibal for Airtel: Even Airtel has not received any notice from the Govt over any additional dues.Harish Salve for Jio: We have not received any notice from the govt on any additional dues claimed by the DOT.
    • Official liquidator of Etisalat DB addressing the Justice Arun Mishra led bench of SC.
    • Videocon RP to SC: We are not liable to pay anything beyond the CIRP process. AGR dues will be addressed as operational dues under the IBC Process. Waterfall mechanism will have to be followed as per IBC. Videocon RP concludes arguments.
    • SC observes: As per trading guidelines, past dues need to be paid before the transfer of the spectrum. If you don't pay, Bharti who acquired the Videocon spectrum will have to pay. NOTE: Videocon's AGR dues pegged at Rs 1376 crore.
      • Counsel for Videocon addressing the Supreme Court bench headed by Justice Arun Mishra. Videocon to SC: The payment of AGR dues will be as per the IBC.
      • Justice Arun Mishra led bench assembles; Hearing begins in the AGR case.
      • AGR hearing to begin shortly in Supreme Court. Justice Arun Mishra led bench likely to focus on the recovery of AGR dues from insolvent telcos. No clarity yet on staggered payment. The hearing was scheduled at 2 pm. Delayed by a few minutes, reports CNBC-TV18's Ashmit Kumar.
      • Anil Ambani's spokesperson says RP (resolution professional) will examine SBI's insolvency application against Anil Ambani, submit a report to NCLT. NCLT order will have no bearing on operations of Rel Infra, Rel Power, Rel Cap.
      • Anil Ambani's spokesperson says that the NCLT order is being reviewed, taking advice on filing an appropriate appeal against RP appointment. NCLT order directing RP appointment does not constitute an admission of SBI's application.
      • NCLT Mumbai Order: Sec 60(2) clearly provides for proceedings to be launched Vs personal guarantors, running parallel to CIRP. Fallacious to assume that no action can be taken against guarantors until Resolution Plan accepted. RP to be appointed, SBI to take necessary action.
      • Meanwhile, the NCLT Mumbai has allowed the initiation of the bankruptcy proceedings against Anil Ambani over Rs 1,200 crore personal guarantee to SBI.
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