BHARTIARTL

’s Cautious Stance on Fresh AGR Dues ⚖️

AGR Dues Controversy:

is taking a cautious approach and is unlikely to challenge the government’s new demand of ₹9,450 crore in adjusted gross revenue (AGR) dues. This decision comes despite its competitor, (Vi), filing a separate petition in the Supreme Court. Learning from Past Legal Battles: According to multiple industry executives, Airtel is hesitant to get involved in another legal dispute with the government. This stance is based on the Supreme Court's previous rejections of similar appeals. For example, in May, the court dismissed a plea by Vodafone Idea, joined by Airtel and Tata Teleservices, for a waiver on ₹45,000 crore in interest and penalties. The apex court had also rejected curative petitions from Vi and other operators in August 2024. Waiting for Vodafone Idea’s Outcome: An industry executive revealed that Airtel is currently in a "wait and watch" mode. The company's strategy is to monitor whether Vodafone Idea's new petition is accepted by the top court. If Vi's appeal is accepted, Airtel may consider joining the legal action; otherwise, it will refrain from doing so. AGR Definition and Discrepancies: The ongoing AGR dispute stems from a long-standing disagreement over the definition of adjusted gross revenue. AGR is the basis for regulatory payments, with operators paying 8% of this revenue as a license fee. The legal battle has revolved around what constitutes AGR, with the government's stance including non-telecom income, such as earnings from handset sales.