The Supreme Court on Friday adjourned hearing in the Vodafone Idea adjusted gross revenue (AGR) matter to October 6. The development follows the top court admitting the telecom operator’s petition challenging the Department of Telecommunications (DoT)’s demand for an additional levy for the 2016-17 period in the matter. The telecom department has demanded outstanding dues amounting to Rs 9,450 crore from Vodafone Idea whereas the telecom firm has argued that the amount exceeds the scope of earlier rulings that capped the liabilities up to FY17 and disallowed reassessments.
The dues include Rs 2,774 crore related to post-merger Vodafone Idea and Rs 5,675 crore related to pre-merger Vodafone Group liabilities. Vodafone Idea has also claimed that the telecom department’s calculations include duplications and clerical errors. It has said that the liabilities have already been calculated and cannot be changed or increased.
The top court set October 6 as the next date of hearing in the matter.
The debt-ridden telecom service provider’s latest petition follows the Supreme Court’s move in May to reject pleas by telecom operators including Vodafone Idea seeking relief in the payment of their interest on the dues, penalty and interest towards their respective AGR liabilities citing severe financial constraints. The top court had found their petitions to be “misconceived”.
Vodafone Idea, a joint venture between homegrown Aditya Birla Group and UK-based Vodafone Group, has struggled to clear its outstanding spectrum and revenue-sharing dues since a 2019 Supreme Court order that widened the scope of revenues on which the dues are assessed.
To help Vodafone Idea, the central government has over time converted part of the dues into equity and increased its stake in the company to 48.99 per cent.
As of March 31, Vodafone Idea total debt stood at approximately Rs 2.42 lakh crore, including long- and short-term borrowings.
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Vodafone Idea shares
Vodafone Idea shares tanked as much as 9.0 per cent to Rs 7.9 apiece on BSE, plunging into red territory shortly after a positive start to the day.
At 1:20 pm, the Vodafone Idea stock traded 6.2 per cent lower at Rs 8.1 on the bourse.
At the current level, the Vi stock has fallen nearly 22 per cent in a year, much worse than a 9.8 per cent fall in the S&P Telecom index.
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