Vodafone Idea share price gained over percent on Monday ahead of the Supreme Court hearing on the company’s plea seeking quashing of the Department of Telecommunication’s additional adjusted gross revenue (AGR) demands for the period up to 2016-17.
A bench comprising Chief Justice B R Gavai and Justices K Vinod Chandran and Vipul M Pancholi is scheduled to hear the plea on October 27 when the apex court resumes working after Diwali vacation.
share price opened higher at ₹9.63 apiece on the BSE, as against its previous close of ₹9.62 per share. The telecom stock gained as much as 1.87% to an intraday high of ₹9.80 apiece.
AGR Case Timeline
On October 13, the Supreme Court had deferred the hearing of to October 27. The debt-laden telecom firm has challenged the DoT’s demand, seeking to quash additional AGR dues of ₹5,606 crore claimed for the period up to FY2016–17.
AGR is the income figure used to calculate the licence fees and spectrum charges that telecom companies must pay to the government.
The top had earlier adjourned the hearing on the petition on several occasions at the request of the telecom firm and Solicitor General Tushar Mehta, appearing for the Centre.
The central government had earlier said that efforts were underway to arrive at a resolution with the company. Mehta said the government held nearly 50% equity in Vodafone Idea, making it a direct stakeholder in the operator’s survival.
VIL has sought a direction to the DoT to “comprehensively re-assess and reconcile all AGR dues for the period up to FY 2016-17 following the ‘Deduction Verification Guidelines’”dated February 3, 2020.
Earlier this year, the apex court refused to review its 2021 order, rejecting telecom companies’ pleas for rectification of alleged errors in the calculation of payable by them.
In September 2020, the apex court had set a 10-year timeline for telecom service providers to clear their AGR-related dues amounting to ₹93,520 crore. It directed the operators to pay 10% of the total dues, as assessed by the DoT, by March 31, 2021, with the remaining balance to be paid in annual installments from April 1, 2021, to March 31, 2031.
The Supreme Court had earlier delivered its landmark verdict on the AGR issue in October 2019. Subsequently, the DoT filed a plea seeking permission for staggered repayment of the dues over 20 years.
Previously, the definition of AGR included both telecom and non-telecom income — such as interest earned from deposits or proceeds from asset sales. However, in 2021, the government revised the rules to exclude non-telecom income from AGR calculations, easing the financial burden on telecom operators.
At 10:30 AM, Vodafone Idea share price was trading 0.62% higher at ₹9.68 apiece on the .
(With inputs from PTI)
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.