Vodafone Idea share price dips after Supreme Court defers AGR dues case hearing to October 27

Vodafone Idea share price fell over 3% on Monday after the Supreme Court deferred the hearing of the AGR case to after Diwali. Vodafone Idea shares dipped as much as 3.65% to ₹8.71 apiece on the BSE.

The Supreme Court will hear a plea filed by debt-ridden telecom operator Vodafone Idea on October 27, Monday, in the adjusted gross revenue (AGR) dues case.

The Aditya Birla Group company has challenged a demand by the Department of Telecommunications (DoT), seeking the quashing of the additional AGR demands for the period until 2016-17.

The Supreme Court on October 13 said it wanted the government to take a specific stand in the Vodafone Idea AGR case. The apex court will next hear the case on October 27.

Vodafone Idea AGR Case

On October 6, the Supreme Court had deferred the hearing on Vodafone Idea’s plea against DoT’s additional AGR demand of about ₹9,450 crore to October 13. Senior advocate Mukul Rohatgi, appearing for the company, and Solicitor General Tushar Mehta, representing the Centre, had jointly requested the matter to be listed for today.

Senior lawyer Mukul Rohatgi appearing for the beleaguered telco, and Solicitor General Tushar Mehta representing the Centre, requested the court to list the matter for today.

Vodafone Idea has also filed an amended petition seeking waiver of interest and penalties on AGR dues, stating that the disputed components of the calculation have not been finalised. The company said it has already paid all undisputed dues based on self-assessment. This follows a fresh writ petition filed on September 8 challenging the DoT’s additional demand.

During a September hearing, Solicitor General Mehta acknowledged that since the government now holds a significant equity stake in Vodafone Idea, a balanced resolution that protects consumer interests is necessary. He urged the court to hear the matter at the earliest.

Earlier this year, on May 13, Vodafone Idea sought a waiver of around ₹45,000 crore in interest and penalties, which the Supreme Court rejected on May 19. The DoT has pegged the company’s total AGR dues at ₹58,254 crore, far exceeding Vodafone Idea’s own estimate of ₹21,500 crore.

The AGR dispute dates back to a 2019 Supreme Court ruling, which held that telecom operators must include non-telecom revenue in their AGR calculations for statutory dues. A 2020 order further barred self-assessment or reassessment of dues, amid discrepancies between DoT’s calculations and telcos’ assessments.

Vodafone Idea currently owes about ₹83,400 crore in AGR liabilities, with annual payments of ₹18,000 crore commencing this March. Including penalties and interest, its total liabilities are estimated at nearly ₹2 lakh crore. The company has admitted that its cash flows are inadequate to meet these obligations.

At 11:55 AM, Vodafone Idea share price was trading 1.11% lower at ₹8.94 apiece on the BSE.

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