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Vodafone Idea shares rose by 9% today (Friday, 19 September). In fact, the Supreme Court deferred hearing the company’s petition against the new adjustable gross revenue (AGR) demand raised by the Central Government.
The government sought more time to respond to this. Since this news, the company’s stock has seen this boom. The company’s stock is currently trading at Rs 7% at Rs 8.38.
Company shares climbed 27% in a month
The company’s stock has climbed 27% in a month and 13% in 6 months. The company’s stock has fallen 19% in a year. The company’s market cap is 90.57 thousand crores.
Solicitor General Tushar Mehta told the court that because the government now holds 48.99% stake in Vodafone Idea, it is necessary to find a solution that protects the interests of customers.
Scris should be solved with SC approval
Tushar Mehta requested the court to list the case for a re -hearing on 26 September. Mehta said, ‘We are not opposing Vodafone Idea’s petition. The government is also a partner in the company, so a solution should be found with the approval of the Supreme Court.
What is the whole matter related to AGR dues?
The controversy is related to the Supreme Court’s decision of 18 March 2020, in which the Telecom Department (DOT) justified the Agr dues up to FY17 and was forbidden to do any re-assessment to the operators. Despite this, Dot has raised new demands for FY18 and FY19.
Vodafone Idea said in his petition on September 8 that a large part of the new demand of Rs 9,450 crore has been associated with the years which have already been decided in the 2020 decision. The company has demanded the court to dismiss these demands and fully calculate the AGR dues.
What is the outstanding on Vodafone idea?
Of the new demand, Rs 2,774 crore is against the Idea Group and Vodafone Idea (after merger), while Rs 6,675 crore is for Vodafone Group, which belongs to the pre -merger time.
The company is already blowing the burden of AGR dues worth Rs 83,400 crore, for which it has to pay an installment of Rs 18,000 crore every year from March. The total outstanding government on the company is about Rs 2 lakh crore by adding penalty and interest.
Company arguments on AGR dues
Vodafone Idea said that the new demand of Rs 5,606 crore has been linked for the years up to FY17 which have already been decided in the 2020 order of the court. The company claimed to have mistakes in the calculation of DOT and said that it does not accept any responsibility than interest on the dues of Rs 58,254 crore.
The company said that this new demand is a threat to its survival. This may threaten the services to 19.8 crore customers and jobs of more than 18,000 employees. Also, thousands of people who are indirectly dependent on the company can also be affected.
Telecom department replied
On August 13, the Telecom Department said that updated license fees up to FY19 were not included in the Supreme Court’s order of 1 September 2020.
The department made a new calculation of the amount with penalty and interest by October 2019 and increased it at the rate of 8% annually by March 2025.
Vodafone Idea dismissed this calculation on August 28, saying that there are mistakes in the calculation of the telecom department for FY18 and FY19.
What will happen next in the case of AGR arreoted?
Now the court will next hear the case on 26 September. Both Vodafone Idea and the government hope that there will be a solution that will give relief to the company and protect the interests of the customers.
This case is not only important for the future of Vodafone Idea, but it can also have a major impact on the telecom sector and millions of customers.
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