The Supreme Court of India has directed the telecom companies to provide a payments roadmap for clearing their AGR (adjusted gross revenue)-related dues, in case the staggered payment option is granted. This comes after the telecom companies have been requesting for allowing them to pay their dues over a period of time as paying the amount upfront will lead to several financial crisis for telcos and even a possible closure for some.
Responding to their pleas, the apex court has asked telcos to furnish details around the period required to repay, timeline of payment, and security that they can provide to guarantee the payment will be made. It has asked telcos if they are ready to provide some security likely in the form of a personal guarantee from company directors that they will pay up if the staggered payment option is granted.
The 3-judge bench headed by Justice Mishra has clarified that the option of staggered payments cannot be explored without undertakings.
The next hearing has been scheduled for June 18, 2020.
