The telecom department has withdrawn its order that asked for no coercive action against defaulting telcos after the Supreme Court on Friday took a strong view of non-compliance of its order on payment of statutory AGR dues by telecom companies.

The department's move came after the Supreme Court directed the managing directors and directors of telcos and other firms to explain why contempt action should not be taken against them for non-compliance of its order to pay adjusted gross revenue (AGR) of Rs 1.47 lakh crore to the Department of Telecommunications. The apex court also threatened contempt proceedings against the official who issued the order staying implementation of SC order in AGR repayment.

Taking strong note of the non-compliance of its order, a bench of Justice Arun Mishra, Justice S Abdul Nazeer and Justice M R Shah expressed anguish over the order passed by DoT's desk officer, staying the effect of its verdict in AGR matter.