Telecom AGR dues case in SC: Anil Singhvi looks at what is in store for telcos, explores possibilities
Telecom AGR Dues: The Supreme Court of India is hearing the petition filed by the telecom companies in Adjusted Gross Revenue (AGR) dues payment today.
Telecom AGR Dues: The Supreme Court of India is hearing the petition filed by the telecom companies in Adjusted Gross Revenue (AGR) dues payment today. The telecom companies have asked for relief from the Apex Court, demanding 20 years time in their payments. But, till date, Supreme Court has been maintaining its view that operators were well aware of their due payment but they deliberately delayed the same by knocking at the door of the court . But, in the wake of Coronavirus spread and banks feeling the heat of telecom debt exposure, there are chances that the highest court in India may give some relief to telephone operators. Zee Business Managing Editor Anil Singhvi talks about the possible Supreme Court ruling and its impact on operator companies and banks.
Speaking on the possibility of Supreme Court not giving any relief to the telecom companies, Anil Singhvi said, "If the Supreme Court doesn't give any relief in telecom AGR dues, then telecom companies will have no option but to pay their dues. In that case, they will delay their loan repayments and in that case banks will have to do the provisioning for their exposure in the telecom companies."
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So, Singhvi said that if the SC doesn't give any relief to telecom companies, then banks will come under pressure and they will have no option but to do the provisioning for their exposure in telecom companies.
However, after the outbreak of COVID-19 pandemic, the Supreme Court may not think of putting banks under the heat and in that case it may allow some relief to the telecom operator companies in their AGR dues payments.
See Zee Business tweet below:
#AGR मामले पर 'सुप्रीम' फैसले से बाजार में बड़ा मूव संभव...अनिल सिंघवी ने कहा- SC का फैसला टेलीकॉम कंपनियों के पक्ष में आया तो शेयर लगाएंगे जबरदस्त दौड़... बैंकों को भी होगा फायदा, बोले- फैसले के बाद बैंक निफ्टी 20000 या 22000 के लेवल भी दिखा सकता है#EditorsTake @AnilSinghvi_ pic.twitter.com/N95TA8FmD3
— Zee Business (@ZeeBusiness) June 11, 2020
"If the Supreme Court delivers some relief to the operator companies in their due payments, then it will be a boost for both banking and telecom industry and in that case we may witness fresh rallies in both telecom and banking index," said Singhvi. He said that both possibilities are there and one should be ready for both results, especially those who have investments in telecom and banking stocks.
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