The government is actively considering allowing adjusted gross revenue (AGR) moratorium through legislation. In September 2020, the Supreme Court in a judgment had said that the amount payable needed to be coughed up in 10 instalments ending 2031.

Meanwhile, the Union Cabinet has approved a four-year moratorium on AGR dues.

How this will impact:

Sources say there is a consideration within the government that perhaps the best way to implement this would be through an ordinance route or a legislative route and that is the question being deliberated upon.

The government, however, said that the quantum of the AGR payment and the term of the payout, which is 10 years, as prescribed by the Supreme Court, will not change. The government has also pointed out that even the net present value of the dues is protected because this four-year moratorium, the amount that has been deferred is protected through the levy of interest.

On all these fronts, the government is quick to point out that there is no violation of the Supreme Court, there is no modification of the order and it is in consistent with the order but to give effect, the one option that is being considered increasingly is to go through a legislative route or an ordinance route.

There are discussions within the government on how to implement that moratorium that was approved by the Cabinet. It has not been finalised yet.

First Published:Sept 21, 2021 3:52 PM IST