AGR case: Professional managers face bigger risk if telcos default

The Supreme Court’s directive that managing directors (MDs)/chairmen or any authorised officer of telecom companies (telcos) must furnish an undertaking to pay the adjusted gross revenue (AGR) arrears within four weeks has put the onus of payment on professional managers. This has put professional managers at increased risk if any default takes place in future.

The Bench led by Justice Arun Misra observed that should telcos fail to pay up, it would lead to penalty, interest, and contempt of court.  The order was silent on whether the promoters and the boards of respective companies would be held liable.

“The order