Question Description
A recent incident precipitated the crisis in the already distressed sector. The Supreme Court's 24 October 2019 (Union of India v Association of Unified Telecom Service Providers of India) ruling ordered the telecom companies to pay up all that they owed in the form of levies, arrears, penalties and interest payments penalties through the last 15 years. The dispute was on how to calculate the gross adjusted revenues from which the government levies a tax. The companies contended that only their revenues arising out of their use of spectrum be considered. The Department of Telecommunications (DoT), however, also included all their indirect earnings that form the adjusted gross revenue (AGR). This would include, for example, dividends and revenue from sale of handsets that are bundled with services, interest income, scrap sale or even rental income. The Supreme Court upheld the DoT's view in its October order.This definition of AGR spikes up the arrears, penalties and interest payments to a value close to Rs. 92,000 crore to be paid by the telecom firms in three months.This value, in an industry that is already saddled with a huge debt, is a matter of serious concern. While Bharti Airtel and Vodafone-Idea have to pay Rs. 29,000 crore and Rs. 33,000 crore respectively, Reliance Jio, which is a new entrant, needs to pay Rs. 13,000 crore, due to its purchase of Reliance communication’s liabilities. Vodafone-Idea's cash reserves do not even match up to the penalty amount, making it seriously consider closing down. Vodafone-Idea reported a loss of almost Rs. 50,000 crore in the quarter ending in September 2019 (compared with Rs. 5,000 crore last year in the same quarter). This is, by many accounts, the largest loss by an Indian company.Airtel's story is also woeful, reporting a loss of Rs. 23,000 crore.These numbers are staggeringly high, enough to break a company down. Price wars in the last two years had led to a considerable bleeding of the incumbents already.Vodafone-Idea's future seems uncertain. Since the company owes huge debts to public banks, and has a number of dependent vendors, a ripple effect may hurt the overall economy. Lawmakers are genuinely worried and companies are trying hard to strike a deal with the government. A committee of secretaries was formed to consider a relief package for the beleaguered industry.They have granted a two-year moratorium on the spectrum payments, offering some cash flow relief, but do not touch the Supreme Court-imposed penalty.Estimates reveal that this package does not make much of a difference. Conversations on the bailout have begun.While this may not be a good sign, there is a need to dig deeper.Q. In what context has the term 'ruling' been used in the passage?a)A diktat of the politically superior to the inferior.b)A judicial decision by the highest court of law of in the country.c)The opinion of the judges on a social issue.d)The accountability and the principle of check and balance between organs of the government.Correct answer is option 'B'. Can you explain this answer? for CLAT 2025 is part of CLAT preparation. The Question and answers have been prepared according to the CLAT exam syllabus. Information about A recent incident precipitated the crisis in the already distressed sector. The Supreme Court's 24 October 2019 (Union of India v Association of Unified Telecom Service Providers of India) ruling ordered the telecom companies to pay up all that they owed in the form of levies, arrears, penalties and interest payments penalties through the last 15 years. The dispute was on how to calculate the gross adjusted revenues from which the government levies a tax. The companies contended that only their revenues arising out of their use of spectrum be considered. The Department of Telecommunications (DoT), however, also included all their indirect earnings that form the adjusted gross revenue (AGR). This would include, for example, dividends and revenue from sale of handsets that are bundled with services, interest income, scrap sale or even rental income. The Supreme Court upheld the DoT's view in its October order.This definition of AGR spikes up the arrears, penalties and interest payments to a value close to Rs. 92,000 crore to be paid by the telecom firms in three months.This value, in an industry that is already saddled with a huge debt, is a matter of serious concern. While Bharti Airtel and Vodafone-Idea have to pay Rs. 29,000 crore and Rs. 33,000 crore respectively, Reliance Jio, which is a new entrant, needs to pay Rs. 13,000 crore, due to its purchase of Reliance communication’s liabilities. Vodafone-Idea's cash reserves do not even match up to the penalty amount, making it seriously consider closing down. Vodafone-Idea reported a loss of almost Rs. 50,000 crore in the quarter ending in September 2019 (compared with Rs. 5,000 crore last year in the same quarter). This is, by many accounts, the largest loss by an Indian company.Airtel's story is also woeful, reporting a loss of Rs. 23,000 crore.These numbers are staggeringly high, enough to break a company down. Price wars in the last two years had led to a considerable bleeding of the incumbents already.Vodafone-Idea's future seems uncertain. Since the company owes huge debts to public banks, and has a number of dependent vendors, a ripple effect may hurt the overall economy. Lawmakers are genuinely worried and companies are trying hard to strike a deal with the government. A committee of secretaries was formed to consider a relief package for the beleaguered industry.They have granted a two-year moratorium on the spectrum payments, offering some cash flow relief, but do not touch the Supreme Court-imposed penalty.Estimates reveal that this package does not make much of a difference. Conversations on the bailout have begun.While this may not be a good sign, there is a need to dig deeper.Q. In what context has the term 'ruling' been used in the passage?a)A diktat of the politically superior to the inferior.b)A judicial decision by the highest court of law of in the country.c)The opinion of the judges on a social issue.d)The accountability and the principle of check and balance between organs of the government.Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for CLAT 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A recent incident precipitated the crisis in the already distressed sector. The Supreme Court's 24 October 2019 (Union of India v Association of Unified Telecom Service Providers of India) ruling ordered the telecom companies to pay up all that they owed in the form of levies, arrears, penalties and interest payments penalties through the last 15 years. The dispute was on how to calculate the gross adjusted revenues from which the government levies a tax. The companies contended that only their revenues arising out of their use of spectrum be considered. The Department of Telecommunications (DoT), however, also included all their indirect earnings that form the adjusted gross revenue (AGR). This would include, for example, dividends and revenue from sale of handsets that are bundled with services, interest income, scrap sale or even rental income. The Supreme Court upheld the DoT's view in its October order.This definition of AGR spikes up the arrears, penalties and interest payments to a value close to Rs. 92,000 crore to be paid by the telecom firms in three months.This value, in an industry that is already saddled with a huge debt, is a matter of serious concern. While Bharti Airtel and Vodafone-Idea have to pay Rs. 29,000 crore and Rs. 33,000 crore respectively, Reliance Jio, which is a new entrant, needs to pay Rs. 13,000 crore, due to its purchase of Reliance communication’s liabilities. Vodafone-Idea's cash reserves do not even match up to the penalty amount, making it seriously consider closing down. Vodafone-Idea reported a loss of almost Rs. 50,000 crore in the quarter ending in September 2019 (compared with Rs. 5,000 crore last year in the same quarter). This is, by many accounts, the largest loss by an Indian company.Airtel's story is also woeful, reporting a loss of Rs. 23,000 crore.These numbers are staggeringly high, enough to break a company down. Price wars in the last two years had led to a considerable bleeding of the incumbents already.Vodafone-Idea's future seems uncertain. Since the company owes huge debts to public banks, and has a number of dependent vendors, a ripple effect may hurt the overall economy. Lawmakers are genuinely worried and companies are trying hard to strike a deal with the government. A committee of secretaries was formed to consider a relief package for the beleaguered industry.They have granted a two-year moratorium on the spectrum payments, offering some cash flow relief, but do not touch the Supreme Court-imposed penalty.Estimates reveal that this package does not make much of a difference. Conversations on the bailout have begun.While this may not be a good sign, there is a need to dig deeper.Q. In what context has the term 'ruling' been used in the passage?a)A diktat of the politically superior to the inferior.b)A judicial decision by the highest court of law of in the country.c)The opinion of the judges on a social issue.d)The accountability and the principle of check and balance between organs of the government.Correct answer is option 'B'. Can you explain this answer?.

Solutions for A recent incident precipitated the crisis in the already distressed sector. The Supreme Court's 24 October 2019 (Union of India v Association of Unified Telecom Service Providers of India) ruling ordered the telecom companies to pay up all that they owed in the form of levies, arrears, penalties and interest payments penalties through the last 15 years. The dispute was on how to calculate the gross adjusted revenues from which the government levies a tax. The companies contended that only their revenues arising out of their use of spectrum be considered. The Department of Telecommunications (DoT), however, also included all their indirect earnings that form the adjusted gross revenue (AGR). This would include, for example, dividends and revenue from sale of handsets that are bundled with services, interest income, scrap sale or even rental income. The Supreme Court upheld the DoT's view in its October order.This definition of AGR spikes up the arrears, penalties and interest payments to a value close to Rs. 92,000 crore to be paid by the telecom firms in three months.This value, in an industry that is already saddled with a huge debt, is a matter of serious concern. While Bharti Airtel and Vodafone-Idea have to pay Rs. 29,000 crore and Rs. 33,000 crore respectively, Reliance Jio, which is a new entrant, needs to pay Rs. 13,000 crore, due to its purchase of Reliance communication’s liabilities. Vodafone-Idea's cash reserves do not even match up to the penalty amount, making it seriously consider closing down. Vodafone-Idea reported a loss of almost Rs. 50,000 crore in the quarter ending in September 2019 (compared with Rs. 5,000 crore last year in the same quarter). This is, by many accounts, the largest loss by an Indian company.Airtel's story is also woeful, reporting a loss of Rs. 23,000 crore.These numbers are staggeringly high, enough to break a company down. Price wars in the last two years had led to a considerable bleeding of the incumbents already.Vodafone-Idea's future seems uncertain. Since the company owes huge debts to public banks, and has a number of dependent vendors, a ripple effect may hurt the overall economy. Lawmakers are genuinely worried and companies are trying hard to strike a deal with the government. A committee of secretaries was formed to consider a relief package for the beleaguered industry.They have granted a two-year moratorium on the spectrum payments, offering some cash flow relief, but do not touch the Supreme Court-imposed penalty.Estimates reveal that this package does not make much of a difference. Conversations on the bailout have begun.While this may not be a good sign, there is a need to dig deeper.Q. In what context has the term 'ruling' been used in the passage?a)A diktat of the politically superior to the inferior.b)A judicial decision by the highest court of law of in the country.c)The opinion of the judges on a social issue.d)The accountability and the principle of check and balance between organs of the government.Correct answer is option 'B'. Can you explain this answer? in English & in Hindi are available as part of our courses for CLAT. Download more important topics, notes, lectures and mock test series for CLAT Exam by signing up for free.

Here you can find the meaning of A recent incident precipitated the crisis in the already distressed sector. The Supreme Court's 24 October 2019 (Union of India v Association of Unified Telecom Service Providers of India) ruling ordered the telecom companies to pay up all that they owed in the form of levies, arrears, penalties and interest payments penalties through the last 15 years. The dispute was on how to calculate the gross adjusted revenues from which the government levies a tax. The companies contended that only their revenues arising out of their use of spectrum be considered. The Department of Telecommunications (DoT), however, also included all their indirect earnings that form the adjusted gross revenue (AGR). This would include, for example, dividends and revenue from sale of handsets that are bundled with services, interest income, scrap sale or even rental income. The Supreme Court upheld the DoT's view in its October order.This definition of AGR spikes up the arrears, penalties and interest payments to a value close to Rs. 92,000 crore to be paid by the telecom firms in three months.This value, in an industry that is already saddled with a huge debt, is a matter of serious concern. While Bharti Airtel and Vodafone-Idea have to pay Rs. 29,000 crore and Rs. 33,000 crore respectively, Reliance Jio, which is a new entrant, needs to pay Rs. 13,000 crore, due to its purchase of Reliance communication’s liabilities. Vodafone-Idea's cash reserves do not even match up to the penalty amount, making it seriously consider closing down. Vodafone-Idea reported a loss of almost Rs. 50,000 crore in the quarter ending in September 2019 (compared with Rs. 5,000 crore last year in the same quarter). This is, by many accounts, the largest loss by an Indian company.Airtel's story is also woeful, reporting a loss of Rs. 23,000 crore.These numbers are staggeringly high, enough to break a company down. Price wars in the last two years had led to a considerable bleeding of the incumbents already.Vodafone-Idea's future seems uncertain. Since the company owes huge debts to public banks, and has a number of dependent vendors, a ripple effect may hurt the overall economy. Lawmakers are genuinely worried and companies are trying hard to strike a deal with the government. A committee of secretaries was formed to consider a relief package for the beleaguered industry.They have granted a two-year moratorium on the spectrum payments, offering some cash flow relief, but do not touch the Supreme Court-imposed penalty.Estimates reveal that this package does not make much of a difference. Conversations on the bailout have begun.While this may not be a good sign, there is a need to dig deeper.Q. In what context has the term 'ruling' been used in the passage?a)A diktat of the politically superior to the inferior.b)A judicial decision by the highest court of law of in the country.c)The opinion of the judges on a social issue.d)The accountability and the principle of check and balance between organs of the government.Correct answer is option 'B'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of A recent incident precipitated the crisis in the already distressed sector. The Supreme Court's 24 October 2019 (Union of India v Association of Unified Telecom Service Providers of India) ruling ordered the telecom companies to pay up all that they owed in the form of levies, arrears, penalties and interest payments penalties through the last 15 years. The dispute was on how to calculate the gross adjusted revenues from which the government levies a tax. The companies contended that only their revenues arising out of their use of spectrum be considered. The Department of Telecommunications (DoT), however, also included all their indirect earnings that form the adjusted gross revenue (AGR). This would include, for example, dividends and revenue from sale of handsets that are bundled with services, interest income, scrap sale or even rental income. The Supreme Court upheld the DoT's view in its October order.This definition of AGR spikes up the arrears, penalties and interest payments to a value close to Rs. 92,000 crore to be paid by the telecom firms in three months.This value, in an industry that is already saddled with a huge debt, is a matter of serious concern. While Bharti Airtel and Vodafone-Idea have to pay Rs. 29,000 crore and Rs. 33,000 crore respectively, Reliance Jio, which is a new entrant, needs to pay Rs. 13,000 crore, due to its purchase of Reliance communication’s liabilities. Vodafone-Idea's cash reserves do not even match up to the penalty amount, making it seriously consider closing down. Vodafone-Idea reported a loss of almost Rs. 50,000 crore in the quarter ending in September 2019 (compared with Rs. 5,000 crore last year in the same quarter). This is, by many accounts, the largest loss by an Indian company.Airtel's story is also woeful, reporting a loss of Rs. 23,000 crore.These numbers are staggeringly high, enough to break a company down. Price wars in the last two years had led to a considerable bleeding of the incumbents already.Vodafone-Idea's future seems uncertain. Since the company owes huge debts to public banks, and has a number of dependent vendors, a ripple effect may hurt the overall economy. Lawmakers are genuinely worried and companies are trying hard to strike a deal with the government. A committee of secretaries was formed to consider a relief package for the beleaguered industry.They have granted a two-year moratorium on the spectrum payments, offering some cash flow relief, but do not touch the Supreme Court-imposed penalty.Estimates reveal that this package does not make much of a difference. Conversations on the bailout have begun.While this may not be a good sign, there is a need to dig deeper.Q. In what context has the term 'ruling' been used in the passage?a)A diktat of the politically superior to the inferior.b)A judicial decision by the highest court of law of in the country.c)The opinion of the judges on a social issue.d)The accountability and the principle of check and balance between organs of the government.Correct answer is option 'B'. Can you explain this answer?, a detailed solution for A recent incident precipitated the crisis in the already distressed sector. The Supreme Court's 24 October 2019 (Union of India v Association of Unified Telecom Service Providers of India) ruling ordered the telecom companies to pay up all that they owed in the form of levies, arrears, penalties and interest payments penalties through the last 15 years. The dispute was on how to calculate the gross adjusted revenues from which the government levies a tax. The companies contended that only their revenues arising out of their use of spectrum be considered. The Department of Telecommunications (DoT), however, also included all their indirect earnings that form the adjusted gross revenue (AGR). This would include, for example, dividends and revenue from sale of handsets that are bundled with services, interest income, scrap sale or even rental income. The Supreme Court upheld the DoT's view in its October order.This definition of AGR spikes up the arrears, penalties and interest payments to a value close to Rs. 92,000 crore to be paid by the telecom firms in three months.This value, in an industry that is already saddled with a huge debt, is a matter of serious concern. While Bharti Airtel and Vodafone-Idea have to pay Rs. 29,000 crore and Rs. 33,000 crore respectively, Reliance Jio, which is a new entrant, needs to pay Rs. 13,000 crore, due to its purchase of Reliance communication’s liabilities. Vodafone-Idea's cash reserves do not even match up to the penalty amount, making it seriously consider closing down. Vodafone-Idea reported a loss of almost Rs. 50,000 crore in the quarter ending in September 2019 (compared with Rs. 5,000 crore last year in the same quarter). This is, by many accounts, the largest loss by an Indian company.Airtel's story is also woeful, reporting a loss of Rs. 23,000 crore.These numbers are staggeringly high, enough to break a company down. Price wars in the last two years had led to a considerable bleeding of the incumbents already.Vodafone-Idea's future seems uncertain. Since the company owes huge debts to public banks, and has a number of dependent vendors, a ripple effect may hurt the overall economy. Lawmakers are genuinely worried and companies are trying hard to strike a deal with the government. A committee of secretaries was formed to consider a relief package for the beleaguered industry.They have granted a two-year moratorium on the spectrum payments, offering some cash flow relief, but do not touch the Supreme Court-imposed penalty.Estimates reveal that this package does not make much of a difference. Conversations on the bailout have begun.While this may not be a good sign, there is a need to dig deeper.Q. In what context has the term 'ruling' been used in the passage?a)A diktat of the politically superior to the inferior.b)A judicial decision by the highest court of law of in the country.c)The opinion of the judges on a social issue.d)The accountability and the principle of check and balance between organs of the government.Correct answer is option 'B'. Can you explain this answer? has been provided alongside types of A recent incident precipitated the crisis in the already distressed sector. The Supreme Court's 24 October 2019 (Union of India v Association of Unified Telecom Service Providers of India) ruling ordered the telecom companies to pay up all that they owed in the form of levies, arrears, penalties and interest payments penalties through the last 15 years. The dispute was on how to calculate the gross adjusted revenues from which the government levies a tax. The companies contended that only their revenues arising out of their use of spectrum be considered. The Department of Telecommunications (DoT), however, also included all their indirect earnings that form the adjusted gross revenue (AGR). This would include, for example, dividends and revenue from sale of handsets that are bundled with services, interest income, scrap sale or even rental income. The Supreme Court upheld the DoT's view in its October order.This definition of AGR spikes up the arrears, penalties and interest payments to a value close to Rs. 92,000 crore to be paid by the telecom firms in three months.This value, in an industry that is already saddled with a huge debt, is a matter of serious concern. While Bharti Airtel and Vodafone-Idea have to pay Rs. 29,000 crore and Rs. 33,000 crore respectively, Reliance Jio, which is a new entrant, needs to pay Rs. 13,000 crore, due to its purchase of Reliance communication’s liabilities. Vodafone-Idea's cash reserves do not even match up to the penalty amount, making it seriously consider closing down. Vodafone-Idea reported a loss of almost Rs. 50,000 crore in the quarter ending in September 2019 (compared with Rs. 5,000 crore last year in the same quarter). This is, by many accounts, the largest loss by an Indian company.Airtel's story is also woeful, reporting a loss of Rs. 23,000 crore.These numbers are staggeringly high, enough to break a company down. Price wars in the last two years had led to a considerable bleeding of the incumbents already.Vodafone-Idea's future seems uncertain. Since the company owes huge debts to public banks, and has a number of dependent vendors, a ripple effect may hurt the overall economy. Lawmakers are genuinely worried and companies are trying hard to strike a deal with the government. A committee of secretaries was formed to consider a relief package for the beleaguered industry.They have granted a two-year moratorium on the spectrum payments, offering some cash flow relief, but do not touch the Supreme Court-imposed penalty.Estimates reveal that this package does not make much of a difference. Conversations on the bailout have begun.While this may not be a good sign, there is a need to dig deeper.Q. In what context has the term 'ruling' been used in the passage?a)A diktat of the politically superior to the inferior.b)A judicial decision by the highest court of law of in the country.c)The opinion of the judges on a social issue.d)The accountability and the principle of check and balance between organs of the government.Correct answer is option 'B'. Can you explain this answer? theory, EduRev gives you an ample number of questions to practice A recent incident precipitated the crisis in the already distressed sector. The Supreme Court's 24 October 2019 (Union of India v Association of Unified Telecom Service Providers of India) ruling ordered the telecom companies to pay up all that they owed in the form of levies, arrears, penalties and interest payments penalties through the last 15 years. The dispute was on how to calculate the gross adjusted revenues from which the government levies a tax. The companies contended that only their revenues arising out of their use of spectrum be considered. The Department of Telecommunications (DoT), however, also included all their indirect earnings that form the adjusted gross revenue (AGR). This would include, for example, dividends and revenue from sale of handsets that are bundled with services, interest income, scrap sale or even rental income. The Supreme Court upheld the DoT's view in its October order.This definition of AGR spikes up the arrears, penalties and interest payments to a value close to Rs. 92,000 crore to be paid by the telecom firms in three months.This value, in an industry that is already saddled with a huge debt, is a matter of serious concern. While Bharti Airtel and Vodafone-Idea have to pay Rs. 29,000 crore and Rs. 33,000 crore respectively, Reliance Jio, which is a new entrant, needs to pay Rs. 13,000 crore, due to its purchase of Reliance communication’s liabilities. Vodafone-Idea's cash reserves do not even match up to the penalty amount, making it seriously consider closing down. Vodafone-Idea reported a loss of almost Rs. 50,000 crore in the quarter ending in September 2019 (compared with Rs. 5,000 crore last year in the same quarter). This is, by many accounts, the largest loss by an Indian company.Airtel's story is also woeful, reporting a loss of Rs. 23,000 crore.These numbers are staggeringly high, enough to break a company down. Price wars in the last two years had led to a considerable bleeding of the incumbents already.Vodafone-Idea's future seems uncertain. Since the company owes huge debts to public banks, and has a number of dependent vendors, a ripple effect may hurt the overall economy. Lawmakers are genuinely worried and companies are trying hard to strike a deal with the government. A committee of secretaries was formed to consider a relief package for the beleaguered industry.They have granted a two-year moratorium on the spectrum payments, offering some cash flow relief, but do not touch the Supreme Court-imposed penalty.Estimates reveal that this package does not make much of a difference. Conversations on the bailout have begun.While this may not be a good sign, there is a need to dig deeper.Q. In what context has the term 'ruling' been used in the passage?a)A diktat of the politically superior to the inferior.b)A judicial decision by the highest court of law of in the country.c)The opinion of the judges on a social issue.d)The accountability and the principle of check and balance between organs of the government.Correct answer is option 'B'. Can you explain this answer? tests, examples and also practice CLAT tests.