AGR case: Supreme Court to hear telcos' curative petition on Friday

What is the AGR case?

AGR or Adjusted Gross Revenue refers to the amount of revenue a telecom company earns from its core business activities.

The telecom companies were required by the Department of Telecom (DOT) in October 2019 to pay levies such as license fees and spectrum usage charges that are calculated based on their AGR.
However, the telecom companies challenged this demand, arguing that non-telecom revenues should be excluded from the calculation of AGR.
The Supreme Court, in September 2020, ruled against the telecom companies, upholding the DOT's definition of AGR.
As a result, the telecom companies were asked to pay the government around Rs 92,000 crore in unpaid dues.

What is a curative petition?

A curative petition is a final attempt to seek a review of a Supreme Court judgment.
It can only be filed in cases where the petitioner can demonstrate that there was a grave error of law or fact apparent on the face of the record.
Curative petitions are extremely rare, and very few are admitted by the Supreme Court each year.

What will happen in the hearing on Friday?

The Supreme Court will hear the curative petitions filed by Bharti Airtel, Vodafone Idea, and Tata Teleservices.
The companies are likely to argue that the Supreme Court's earlier judgment was based on an incorrect interpretation of the law.
The government is likely to argue that the Supreme Court's judgment was correct and should not be overturned.
The Supreme Court may decide to admit the curative petitions and hear them in detail.
Or, it may dismiss the petitions without a hearing if there is no merit in them.
The outcome of the hearing will have a significant impact on the telecom industry in India.
If the Supreme Court overturns its earlier judgment, it will provide a much-needed relief to the telecom companies.
However, if the Supreme Court upholds its earlier judgment, the telecom companies will have to pay the government the unpaid dues.