DoT's Massive AGR Dues Notice to Tata Communications

The Department of Telecommunications (DoT) has slapped Tata Communications with a staggering "show-cause-cum-demand" notice amounting to Rs 7,827.55 crore for adjusted gross revenue (AGR) dues, covering nearly two decades from 2005–06 to 2023–24.

Tata Communications' Stand on the Notice

AS Lakshminarayan, Managing Director of Tata Communications, revealed that the demand includes Rs 276.68 crore related to disallowed deductions under various licences. The company is currently contesting AGR liabilities under its ILD, NLD, and ISP licences in the Supreme Court and TDSAT, asserting these are unrelated to the SC's 2019 AGR ruling on UASL licences.

Legal Battles and Future Steps

Lakshminarayan emphasized Tata Communications' belief in its legal stance, supported by independent opinions, distinguishing its licences from those under the UASL regime scrutinized by the SC in 2019. The company is prepared to defend its position vigorously.

Context of AGR Dues in the Telecom Sector

This development unfolds against the backdrop of the telecom sector's AGR dues saga, with major players like Vodafone Idea and Bharti Airtel facing significant liabilities. Tata Communications' dues were notably absent from initial government calculations, spotlighting the evolving nature of AGR disputes.