Lok Sabha Question No. 329 (STARRED), answered on 2019-12-11
Subject: Adjusted Gross Revenues
Ministry: COMMUNICATIONS
Asked by: Manish Tewari

## GOVERNMENT OF INDIA MINISTRY OF COMMUNICATIONS DEPARTMENT OF TELECOMMUNICATIONS

## LOK  SABHA STARRED QUESTION NO. 329 TO BE ANSWERED ON 11 TH   DECEMBER, 2019

## ADJUSTED GROSS REVENUES

## *329. SHRI MANISH TEWARI:

Will the Minister of COMMUNICATIONS be pleased to state:

- (a) the salient points of the Supreme Court Judgement dated 24-10-2019 in the matter of Adjusted Gross Revenues (AGR) of Telecom Service Providers (TSPs);
- (b) the details of the AGR arrears that have to be recovered by the Government from private and public TSPs, year-wise and TSP-wise; and
- (c) the  roadmap/timelines  formulated  by  the  Government  to  recover  the  aforesaid AGR arrears?

## ANSWER

## MINISTER OF COMMUNICATIONS, LAW & JUSTICE AND ELECTRONICS AND INFORMATION TECHNOLOGY (SHRI RAVI SHANKAR PRASAD)

- (a) to (c) A statement is laid on the Table of the House.

## STATEMENT TO BE LAID ON THE TABLE OF LOK SABHA IN RESPECT OF PARTS (a)  to  (c)  OF  LOK  SABHA  STARRED  QUESTION  NO.  *329  FOR  11 TH DECEMBER, 2019  ON 'ADJUSTED GROSS REVENUES'.

- (a) The  Hon'ble  Supreme  Court  in  CIVIL  APPEAL  NOS.  6328  -  6399  OF  2015  [ UNION OF INDIA Vs. ASSOCIATION OF UNIFIED TELECOM  SERVICE PROVIDERS OF INDIA ETC.] pronounced its judgment dated 24-10-2019 wherein the appeals  filed  by  the  Department  of  Telecom  were  upheld  and  the  appeals  filed  by  the Telecom Service Providers were dismissed.

The salient pointsof the judgement dated 24-10-2019 are attached as Annexure-I.

- (b) The provisional Adjusted Gross Revenue dues of the Telecom Service Providers on account of License Fee and Spectrum Usage Charges are based on the assessments carried out/  demands  raised  and  are  subject  to  revision  in  light  of  the  Hon'ble  Supreme  Court order dated 24-10-2019. Details are at Annexure-II (a) and Annexure-II (b).
- (c) The Hon'ble Supreme Court while pronouncing the judgement on 24-10-2019 has granted  3  months'  time  for  compliance  of  the  order.  The  Department  of  Telecom  has issued  a  letter  to  all  the  Telecom  Service  Providers  (TSPs)  directing  them  to  make  the payments in accordance with the order of the Hon'ble Supreme Court dated 24-10-2019 and  submit  the relevant documentsto  ensure  the  compliance  within  the  stipulated timeframe.

## Salient points of the AGR judgment dated 24.10.2019

1. The Supreme Court delivered the final judgment on 24.10.2019 [Civil Appeal 6328 of  2015] wherein the appeals filed by  Department of Telecom were allowed and appeals filed by the Licensees were dismissed.
2. The Supreme Court has upheld the definition of 'Gross Revenue' and 'Adjusted Gross Revenue' as mentioned in the License Agreement.
3. The Supreme Court held that the Licensees are liable to pay the interest, penalty and interest on penalty as per the license agreement.
4. The Supreme Court has given three months' time to deposit the amount, which is due and compliance be reported.

## Annexure-I

## Telecom Service Providers Wise License Fee Outstanding as per Demand upto July , 2019 (In Rupees crore)

| SNo.   | Name of the Company                             | 2004- 05   | 2005- 06   | 2006- 07   | 2007- 08   | 2008- 09   | 2009- 10   | 2010- 11   | 2011- 12   | 2012- 13   | 2013- 14   | 2014- 15   | 2015- 16   | 2016- 17   |    Total |
|--------|-------------------------------------------------|------------|------------|------------|------------|------------|------------|------------|------------|------------|------------|------------|------------|------------|----------|
| 1      | AIRCEL GROUP OF COMPANIES                       | 0          | 0          | 77.83      | 65.61      | 125.29     | 454.28     | 2745.00    | 625.49     | 1105.91    | 984.23     | 852.20     | 415.85     | 400.99     |  7852.68 |
| 2      | BHARTI AIRTEL GROUP OF COMPANIES                | 0          | 0          | 949.61     | 3351.33    | 2610.03    | 2601.63    | 2014.74    | 2162.45    | 3058.97    | 1485.75    | 2333.65    | 479.86     | 634.09     | 21682.1  |
| 3      | BHARAT SANCHAR NIGAM LIMITED                    | 0          | 0          | 0          | 0          | 0          | 0          | 0          | 0          | 1289.48    | 809.24     | 0          | 0          | 0          |  2098.72 |
| 4      | ETISALAT DB TELECOM PRIVATE LIMITED             | 0          | 0          | 0          | 0.05       | 0.48       | 9.20       | 19.50      | 0          | 0          | 0          | 0          | 0          | 0          |    29.24 |
| 5      | IDEA CELLULAR LTD/VODAFONE IDEA LTD             | 0          | 0          | 227.38     | 826.02     | 1024.55    | 1369.80    | 1103.42    | 980.33     | 931.45     | 862.92     | 733.17     | 425.98     | 0          |  8485.02 |
| 6      | LOOP TELECOM PVT LTD                            | 0          | 0          | 0          | 32.64      | 26.17      | 26.56      | 25.48      | 61.10      | 60.55      | 0          | 0          | 0          | 0          |   232.51 |
| 7      | MAHANAGAR TELEPHONE NIGAM LIMITED               | 0          | 0          | 9.32       | 350.60     | 169.70     | 170.98     | 166.15     | 122.72     | 35.67      | 184.59     | 740.49     | 587.27     | 0          |  2537.48 |
| 8      | QUADRANT TELEVENTURES LIMITED                   | 1.29       | 0.11       | 0          | 33.08      | 36.69      | 1.61       | 0.91       | 2.59       | 2.72       | 13.28      | 4.62       | 0.55       | 18.73      |   116.17 |
| 9      | RELIANCE COMMUNICATION/RELIANCE TELECOM LIMITED | 0          | 0          | 1758.49    | 2690.29    | 3240.38    | 2333.41    | 1823.63    | 949.45     | 1451.95    | 766.55     | 799.21     | 301.49     | 341.62     | 16456.5  |
| 10     | RELIANCE JIO INFOCOMM LTD                       | 0          | 0          | 0          | 0          | 0          | 0          | 0          | 0          | 0          | 8.73       | 4.62       | 0          | 0          |    13.35 |
| 11     | S TEL PVT LTD                                   | 0          | 0          | 0          | 1.34       | 1.32       | 10.43      | 13.15      | 15.76      | 0.44       | 0          | 0          | 0          | 0          |    42.43 |
| 12     | SISTEMASHYAM TELESERVICES LTD                   | 0          | 0          | 4.92       | 4.94       | 32.76      | 31.52      | 79.66      | 81.95      | 33.54      | 11.19      | 21.33      | 0.11       | 0          |   301.93 |
| 13     | TATA GROUP OF COMPANIES                         | 0          | 104.59     | 1389.68    | 1437.15    | 1551.19    | 1788.52    | 938.87     | 695.17     | 672.32     | 637.65     | 382.94     | 108.71     | 280.25     |  9987.04 |
| 14     | TELENOR INDIA PRIVATE LIMITED                   | 0          | 0          | 0          | 0.01       | 0.13       | 13.00      | 259.74     | 349.62     | 444.56     | 449.08     | 338.06     | 95.91      | 0          |  1950.11 |
| 15     | VIDEOCON TELECOMMUNICATIONS LTD                 | 0          | 0          | 0          | 1.54       | 4.97       | 12.16      | 64.94      | 44.89      | 0.08       | 108.80     | 173.14     | 1.74       | 620.36     |  1032.62 |
| 16     | VODAFONE GROUP OF COMPANIES                     | 0          | 0          | 197.46     | 1254.64    | 2499.74    | 3530.11    | 3098.94    | 2280.67    | 2762.59    | 2126.56    | 2073.01    | 0          | 0          | 19823.7  |
|        |                                                 | Total:     |            |            |            |            |            |            |            |            |            |            |            |            | 92641.6  |

These amounts are provisional and subject to  revision  in  light  of  the  Hon'ble  Supreme  Court  Judgement  dated  24.10.2019  and  updation  of Interest, penalty and interest on penalty.

## Telecom Service Providers (TSPs) and yearwise outstanding SUC

| SNo.           | Name of the Company                                                              | 2002- 03       | 2004- 05       | 2005- 06       | 2006- 07       | 2007-08        | 2008- 09       | 2009- 10       | 2010- 11       | 2011- 12       | 2012- 13       | 2013- 14       | 2014- 15       | 2015- 16       | 2016- 17       | 2017- 18       | 2018- 19       | 2019- 20       | Total          |
|----------------|----------------------------------------------------------------------------------|----------------|----------------|----------------|----------------|----------------|----------------|----------------|----------------|----------------|----------------|----------------|----------------|----------------|----------------|----------------|----------------|----------------|----------------|
| 1              | Bharti Airtel Limited                                                            |                | 87.07          | 0.15           | 833.49         | 20007.09       | 489.63         | 867.60         | 3444.12        | 1470.87        | 1412.88        | 738.55         | 1318.37        | 314.65         | 659.97         | 237.01         | 22.55          |                |                |
| 2              | Reliance Jio Infocom Limited (RJIO)                                              |                | 0.01           | 0.43           |                |                |                |                |                |                |                |                |                |                | 10.36          | 36.72          | 0.00           |                |                |
| 3              | Idea Cellular Limited (Idea)                                                     |                |                |                | 82.73          | 321.54         | 556.86         | 590.60         | 1678.70        | 747.77         | 841.15         | 586.13         | 690.49         | 313.21         | 256.94         | 48.33          | 30.92          |                |                |
| 4              | Vodafone India Ltd. (Vodafone)                                                   |                |                | 51.92          | 168.11         | 705.18         | 1270.52        | 1511.81        | 4192.90        | 1658.88        | 2449.59        | 1935.95        | 2203.29        | 716.52         | 819.36         | 300.58         | -0.40          |                |                |
| 5              | Tata Teleservices Limited                                                        |                | 4.42           | 18.04          | 258.71         | 607.78         | 528.28         | 543.10         | 468.32         | 362.35         | 387.57         | 259.53         | 209.74         | 110.18         | 62.61          | 15.68          | -0.02          |                |                |
| 6              | Bharat Sanchar Nigam Limited                                                     |                |                | 271.10         | 604.26         | 1004.33        | 183.38         | 94.33          | 103.40         | 123.86         | 197.82         | 19.51          | 133.69         | 86.38          | 47.77          | -5.24          | 22.81          | 3.07           |                |
| 7              | Mahanagar Telephone Nigam Limited (MTNL)                                         |                |                |                |                |                |                |                | 73.76          | 87.42          | 46.94          | 1.50           | 292.30         | 87.00          | -3.04          |                |                |                |                |
| 8              | Aircel Limited (Aircel)                                                          |                |                |                | 70.04          | -1.33          | -0.12          | 60.03          | 905.40         | 242.57         | 330.87         | 279.99         | 183.97         | 166.63         | 129.88         | 8.85           | 0.00           |                |                |
| 9              | Reliance Telecom Limited (RTL)                                                   | 12.86          |                |                | 14.39          | 54.97          | 188.23         | 97.24          | 64.57          | 29.04          | 82.27          | 74.62          | 77.92          | 44.52          | 52.16          | 3.53           | 0.00           |                |                |
| 10             | Reliance Communication Limited (RCL)                                             |                |                | 23.17          | 288.24         | 730.77         | 870.08         | 640.45         | 481.30         | 316.19         | 242.05         | 104.38         | 97.47          | 45.76          | 44.80          | 2.80           | 0.00           |                |                |
| 11             | Etisalat DB Telecom Pvt. Ltd.                                                    |                |                |                |                |                | 0.40           | -0.04          | 2.42           | 0.02           | 0.00           |                |                |                |                |                |                |                |                |
| 12             | Unitech Wireless East Pvt Ltd                                                    |                |                |                |                |                | 0.02           | 1.05           | 88.29          | 117.41         | 154.48         | 143.60         | 153.41         | 41.15          | 4.78           | 8.13           | 0.00           |                |                |
| 13             | Dishnet Wireless Limited                                                         |                |                | 18.85          | 13.82          | 1.61           | 15.48          | 40.53          | 274.52         | 42.38          | 87.39          | 61.65          | 40.89          | 27.73          | 16.54          | 1.14           | 0.00           |                |                |
| 14             | Loop Telecom Pvt. Ltd.                                                           |                |                |                |                |                | 0.00           | 0.03           | 0.25           | 0.24           | 0.04           |                |                |                |                |                |                |                |                |
| 15             | Quardrant Televentures Ltd.                                                      |                |                |                |                | 10.42          | 12.06          | 1.51           | 1.75           | 20.06          | 4.14           | 7.77           | 2.42           | 4.96           | 6.84           |                |                |                |                |
| 16             | Telenor India Communications Private Ltd/Telewings Comunication Services Pvt Ltd |                |                |                |                |                | 0.01           | 0.12           | 9.45           | 16.86          | 15.86          | 35.79          | 89.37          | 34.80          | 5.53           | 0.04           |                |                |                |
| 17             | S.Tel.Private Ltd                                                                |                |                |                |                | 0.09           | 0.21           | 3.32           | 5.71           | 4.22           | 0.12           |                |                |                |                |                |                |                |                |
| 18             | Sistema Shyam Teleservices Ltd (SSTL)                                            |                |                |                |                | 0.00           | 4.12           | 10.83          | 34.53          | 27.26          | 8.56           | 5.89           | 11.32          | -0.10          | 0.26           | -1.22          |                |                |                |
| 19             | Videocon Telecommunications Ltd                                                  |                |                |                |                | 0.00           | 0.69           | 6.66           | 9.23           | 4.58           | 8.59           | 5.56           | 5.15           | 0.27           | 224.36         | 0.00           |                |                |                |
| TOTAL 55054.51 | TOTAL 55054.51                                                                   | TOTAL 55054.51 | TOTAL 55054.51 | TOTAL 55054.51 | TOTAL 55054.51 | TOTAL 55054.51 | TOTAL 55054.51 | TOTAL 55054.51 | TOTAL 55054.51 | TOTAL 55054.51 | TOTAL 55054.51 | TOTAL 55054.51 | TOTAL 55054.51 | TOTAL 55054.51 | TOTAL 55054.51 | TOTAL 55054.51 | TOTAL 55054.51 | TOTAL 55054.51 | TOTAL 55054.51 |

## Annexure-II (b)

## (In Rupees crore)

These amounts are provisional and subject to  revision  in  light  of  the  Hon'ble  Supreme  Court  Judgement  dated  24.10.2019  and  updation  of Interest, penalty and interest on penalty.

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