New Delhi: Vodafone Idea has gone to the Supreme Court again to ask for relief from its massive AGR dues. The telecom company has requested the court to waive over Rs 30,000 crore, which includes penalties and interest charges. According to a report by CNBC-TV18, the company wants an urgent hearing on the matter on May 19.
The company said that the central government, which owns a 49 per cent stake in Vodafone Idea, cannot give it any more relief because of the strict rules set by the court's earlier AGR judgment. However, Vodafone Idea added that since the government now owns almost half of the company, it should help avoid a complete collapse of the telecom sector.
The AGR issue goes back many years and relates to how telecom companies calculate their revenues for paying dues. The Supreme Court had earlier ruled in favor of the government, causing big dues for companies like Vodafone Idea and Bharti Airtel.
After this news, Vodafone Idea’s stock price went up and touched the day’s high, showing that investors reacted positively to the latest legal move. The company has many small investors — over 59 lakh — and foreign investors hold about 6.56 per cent of the shares, though no single one holds more than 1 per cent.
In another major update, Vodafone Idea launched its 5G services in Delhi on May 15. This is an important step in its 5G rollout across India.
At the same time, Bharti Airtel is also exploring legal ways to ensure fair treatment and may consider converting its AGR dues into government equity, similar to what Vodafone Idea has done earlier.
