Supreme Court to review Vodafone Idea's petition regarding additional Looking-Forward Adjusted Gross Revenue (AGR) fees on September 26th.
In a recent development, telecom operator Vodafone Idea has filed a new petition with the Supreme Court, seeking a comprehensive re-assessment and reconciliation of all AGR (Adjusted Gross Revenue) dues for the period up to FY 2016-17, following the "Deduction Verification Guidelines" dated February 3, 2020.
This fresh plea comes after the Supreme Court dismissed applications from Vodafone Idea and Bharti Airtel on July 23, 2021, seeking correction of alleged arithmetical errors and duplication of entries in AGR calculations. The Supreme Court's clarification in the AGR case stated that the DoT's demand regarding AGR dues was final, leaving no scope for disputes or re-assessment.
Earlier this year, the Supreme Court had refused to review its 2021 order rejecting telecom majors' pleas for rectification of alleged errors in AGR dues calculation. Telecom operators were directed to pay 10% of the total dues by March 31, 2021, with the remaining amount to be paid in yearly installments from April 1, 2021, to March 31, 2031.
The hearing for Vodafone Idea's plea is scheduled for September 26. It is important to note that the Supreme Court will also take up all pending pleas on the answer key transparency issue in the NEET PG 2025 case today.
The focus in the telecom sector is shifting from recovery to reinvention, according to experts. The surge in Vodafone Idea's stock price, which observed a 10% jump to Rs 8.61, intra-day, following the reports about the Supreme Court hearing, seems to reflect this sentiment.
It is essential to remember that Vodafone Idea is a telecom operator in India, which has been grappling with significant financial challenges due to the AGR dues issue. The company had previously expressed its inability to pay the dues as demanded without government support.
Meanwhile, the Department of Telecommunications had approached the Supreme Court seeking a staggered payment plan for telecom companies to settle AGR dues over 20 years. The Supreme Court set a 10-year timeline for telecom operators to clear AGR dues of Rs 93,520 crore in September 2020.
The Supreme Court is likely to hear Vodafone Idea's plea on a Rs 9,450 crore AGR demand on September 19, according to a report. The outcome of this hearing could have significant implications for the telecom sector and Vodafone Idea's financial future.
The Supreme Court will conduct the hearing by a bench of Chief Justice B R Gavai and Justices K Vinod Chandran and N V Anjaria. The court's decision will be closely watched by all stakeholders in the telecom industry.
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