DoT likely to issue demand notices to six operators for under-reporting of AGR

The Department of Telecommunications (DoT) is likely to soon issue demand notices to six operators, namely, Bharti Airtel, Aircel, Reliance Communications, Vodafone India, Idea Cellular and Tata Teleservices Limited, for a cumulative Rs 124.88 billion for under- reporting of adjusted gross revenue (AGR). The move comes after a Comptroller and Auditor General (CAG) of India report tabled in Parliament in March 2016 stated that these companies had under-reported their revenues by Rs 460.46 billion between 2006 and 2010, leading to a loss of Rs 124.88 billion to the exchequer. The operators, however, have contested CAG’s findings, stating that the definition of AGR for the purpose of calculating licence fee is under litigation in various judicial forums, including the Telecom Disputes Settlement and Appellate Tribunal (TDSAT), high courts and the Supreme Court.

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