Vodafone Idea Shares Fall Nearly 4% as Supreme Court Hears AGR Dues Plea

On Friday, September 26, Vodafone Idea shares dropped close to 4%, ahead of a crucial Supreme Court hearing on the company's plea challenging the Centre’s additional Adjusted Gross Revenue (AGR) dues.

The financially troubled telecom operator is contesting a fresh AGR demand of ₹9,450 crore raised by the Department of Telecommunications (DoT). Vodafone Idea argues that the demand exceeds the scope of the Supreme Court’s 2019 verdict, which had earlier settled the AGR liabilities of telecom firms.

Government Holds Stake, But Not Relief

During last week's hearing, the Centre informed the court that it had no objections to Vodafone Idea’s plea. However, it also emphasised the need for a resolution, particularly since the government now holds a 49% equity stake in the company. Despite being the largest shareholder, the Centre is not categorised as a promoter.

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SC Calls for Closure, Reviews AGR Dispute Today

The Supreme Court had previously remarked that the case requires finality and adjourned the hearing to Friday, September 26. The telecom company is pushing back against what it calls an overreach of the court’s earlier judgment.

According to Vodafone Idea, the DoT’s demand includes duplicate entries and requires fresh reconciliation, especially for periods prior to FY2016-17. Of the total ₹9,450 crore being contested.

• ₹2,774 crore pertains to the FY18-19 dues of the merged Vodafone Idea entity (post the August 2018 merger).
• ₹5,675 crore relates to the pre-merger liabilities of Vodafone Group.

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