Vodafone Idea Shares Drop Nearly 8 Percent Following Supreme Court Hearing Delay on AGR Demands

Vodafone Idea's shares fell sharply by nearly 8% after the Supreme Court postponed a hearing to October 6. The hearing concerns the company's request to dismiss additional adjusted gross revenue (AGR) demands for the period up to 2016-17. On the BSE, the stock dropped 7.60% to close at Rs 8.02, having fallen as much as 8.98% to Rs 7.90 during the day.

Similarly, on the NSE, Vodafone Idea's shares decreased by 7.60%, ending at Rs 8.02. The Supreme Court bench, led by Chief Justice B R Gavai and including Justices K Vinod Chandran and NV Anjaria, agreed to defer the hearing after Solicitor General Tushar Mehta requested it be rescheduled post-Dusshera break.

Vodafone Idea's Legal Challenge

Vodafone Idea Ltd (VIL) has filed a new petition against the Department of Telecommunications (DoT). The petition challenges a fresh demand of Rs 5,606 crore related to the financial year 2016-17. This legal move is part of VIL's ongoing efforts to address AGR dues.

The company is seeking a directive for DoT to thoroughly reassess and reconcile all AGR dues up to FY 2016-17. This request follows the Deduction Verification Guidelines issued on February 3, 2020.

Government's Stake in Vodafone Idea

The government holds nearly half of Vodafone Idea's equity, making it a significant stakeholder in the company's future. The Solicitor General mentioned that efforts are being made to find a resolution with Vodafone Idea, highlighting the government's vested interest in the operator's survival.

"Some solution may have to be found out, subject to your lordship’s approval. If it can be kept next week, we can think of some solution," stated the law officer during discussions about potential resolutions.

The Centre had previously indicated that discussions were underway to reach an agreement with Vodafone Idea. This ongoing dialogue underscores the importance of finding a viable solution for both parties involved.

The outcome of this legal battle could significantly impact Vodafone Idea's financial stability and its ability to continue operations in India's competitive telecom market.

With inputs from PTI