Vodafone Idea shares fall 5% as SC defers AGR dues plea hearing to October 13 – News Air Insight

Shares of Vodafone Idea fell over 5% on Monday to touch an intraday low of Rs 8.33 apiece on the BSE after the Supreme Court postponed the hearing on the telecom company’s AGR plea to October 13, following a request from the government for additional time.

According to a report by CNBC-TV18, Vodafone Idea’s counsel did not object to the government’s request for additional time.

The telecom operator has filed a petition to quash the DoT’s claim, arguing that it goes beyond the scope of the apex court’s earlier ruling on AGR liabilities. Of the total dues, Rs 2,774 crore pertains to the post-merger Vodafone Idea entity, while Rs 5,675 crore relates to liabilities of the pre-merger Vodafone Group.

The top court had deferred the matter earlier on September 26 to October 6 after hearing submissions from Solicitor General Tushar Mehta, representing the central government.

Vodafone Idea has also filed a fresh plea seeking a direction to the DoT to comprehensively reassess and reconcile all AGR dues up to FY 2016-17 in accordance with the Deduction Verification Guidelines issued on February 3, 2020. The company’s argument stems from the contention that the additional demand is inconsistent with those guidelines.

The Centre had earlier indicated that efforts were underway to resolve with the company. Mehta noted that the government holds nearly 50% equity in Vodafone Idea, making it a stakeholder in the telecom operator’s continuity. He also told the court that “some solution may have to be found out”.Previously, in July 2021, the apex court dismissed Vodafone Idea and Bharti Airtel’s pleas seeking rectification of alleged calculation errors and duplication in AGR dues. The court had earlier ruled in September 2020 that telecom companies would be required to pay their AGR dues over 10 years, with 10% of the dues to be cleared by March 31, 2021, and the rest in equal yearly instalments through March 2031.In its 2020 judgment, the court had said there would be no further reassessment or disputes regarding AGR dues, holding the DoT’s demand as final.

However, the DoT later moved a plea seeking staggered payment of dues over 20 years, citing the challenges faced by telcos.

Separately, Vodafone Idea also announced that Murthy GVAS has concluded his tenure as Chief Financial Officer (CFO) and Key Managerial Personnel (KMP) of the company as of the close of working hours on October 5.

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The Board of Directors has now approved the appointment of Tejas Mehta as the new CFO and KMP, effective October 6.

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