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SC admits Centre's plea against Tata Sky on AGR issue
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NEW DELHI: The Supreme Court has admitted the Centre's petition challenging the broadcast tribunal's judgment that licence fees for direct-to-home (DTH) services should be charged on adjusted gross revenue and not gross revenue.

A Bench headed by Justice B N Agarwal, while admitting the Ministry of Information and Broadcasting's plea, also tagged the matter with a similar plea pending before it.

Challenging the tribunal's ruling that upheld the concept of adjusted gross revenue (AGR) instead of gross revenue (GR) as the basis of licence fee, the Ministry of Information and Broadcasting said that GR was a term of contract between the parties and the other party (Tata Sky Ltd) cannot plead that it had understood the term differently.

AGR means revenue on licence fee payable after excluding income from activities which do not form part of licensed activities.

Licence fee for telecom services is on the basis of AGR. According to the government, it had issued detailed guidelines on March 15, 2001, for operating DTH services in the country.

Solicitor General Gopal Subramanium said that both the telecommunication and broadcasting licences were issued under Section 4 of the Indian Telegraph Act, 1885, but the terms and conditions of the licences are different.

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