Vodafone Idea shares plunged 20% after the Supreme Court rejected its plea to recalculate AGR dues. Analysts believe the company will need to raise funds to repay the dues. Competition and tariff hikes may further impact Vodafone Idea’s survival.
AMN
The Supreme Court today declined to hear curative petitions filed by Vodafone Idea and other telecom companies seeking relief in the apex court’s 2019 ruling that added their non-telecom revenue to the adjusted gross revenue (AGR) for calculating licence fees and spectrum usage charges payable to the government.
“Application for listing the curative petitions in open court is rejected,” a three-judge bench headed by Chief Justice of India DY Chandrachud said in its order dated August 30, which was issued on Thursday. “The curative petitions are dismissed in terms of the signed order. Pending application, if any, stands disposed of.”
The order is a blow for Vodafone Idea and Airtel, which had hoped to reduce their burden of ₹1.47 trillion in AGR dues to the government. Lower payments could have helped loss-making Vodafone Idea reduce its debt burden, but with the rejection of its curative petition, its financial troubles may continue to mount.