Vodafone Idea share price jumped over 7% on Friday after the government informed the Supreme Court that it was not opposing the telecom operator’s plea in the Adjusted Gross Revenue (AGR) case and emphasized the need for a resolution.
“Not opposing Vodafone Idea plea, some solution is required, government is also an equity holder. Some solution may be required, subject to Supreme Court approval,” the Centre told the apex court.
A bench comprising Chief Justice B R Gavai and Justices K Vinod Chandran and N V Anjaria fixed the matter for next Friday on September 26, after taking note of submissions by senior advocate Mukul Rohatgi, representing Vodafone Idea, and Solicitor General Tushar Mehta, appearing for the Centre, PTI reported.
Mehta told the court that circumstances have changed, noting that the government, which is also an equity holder in Vodafone Idea, was not opposing the company’s plea and that “some solution is required,” subject to the apex court’s approval.
The Supreme Court, however, remarked, “There has to be some finality to these proceedings.”
Vodafone Idea had filed a fresh plea on September 8, seeking a direction to the Department of Telecommunications (DoT) to “comprehensively re-assess and reconcile all AGR dues for the period up to FY 2016-17” as per the Deduction Verification Guidelines issued on February 3, 2020.
The development comes against the backdrop of the Supreme Court’s earlier orders in the long-running AGR dispute. In September 2020, the court allowed telecom operators a 10-year window to clear outstanding dues of around ₹93,520 crore, directing them to pay 10% of their liabilities by March 31, 2021, with the balance to be settled in annual instalments until March 31, 2031.
The apex court had also dismissed multiple pleas by Vodafone Idea and Bharti Airtel in July 2021 seeking rectification of alleged calculation errors and duplication in AGR dues, reaffirming that DoT’s demand was final and that no reassessment could be sought.
The AGR dispute stems from the Supreme Court’s October 2019 ruling, which upheld DoT’s definition of AGR and paved the way for massive dues on telecom operators. The DoT had subsequently sought staggered repayment schedules, citing the financial stress in the industry.
The matter will now come up before the top court again on September 26, when Vodafone Idea’s plea and the government’s additional demand will be considered.
At 12:05 PM, Vodafone Idea share price was trading 6.62% higher at ₹8.37 apiece on the BSE.
(With inputs from PTI)
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