Among the many regulatory and legal battles that have shaped India’s telecom sector, none has been as far-reaching and destructive as the Adjusted Gross Revenue (AGR) case. The Supreme Court’s 2019 verdict not only reaffirmed the government’s stance but also imposed an unexpectedly harsh liability on telecom operators—effectively pushing the sector to the brink of collapse and wiping out most market competition.
Ironically, even the Department of Telecommunications (DoT), which had aggressively defended its position on AGR calculations, appeared taken aback by the ferocity of the judgment. The ruling exceeded the DoT’s expectations, prompting it to file a modification application on 16th March 2020, pleading for leniency on behalf of the industry. DoT proposed a 20-year repayment window with 8% interest, ensuring the Net Present Value (NPV) of dues remained intact.
