The Supreme Court on Friday deferred hearing Vodafone’s plea challenging the Department of Telecommunications’ demand for Rs 9,450 crore in additional adjusted gross revenue (AGR) dues, after Solicitor General Tushar Mehta sought an adjournment.
The apex court is hearing a plea filed by Vodafone Idea where the co is seeking to quash DoT’s claim, arguing it exceeds the scope of the Supreme Court’s earlier ruling on AGR liabilities.
Of the total demand, 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 company stated.
The telecom operator has requested a reconciliation of dues, citing duplication of figures and inconsistencies arising from earlier finalisation of financial accounts.
The Department of Telecom, however, maintains that the demand is not a reassessment but stems from adjustments made during the closure of pending accounts.
The verdict carries significant implications for Vodafone Idea, which is in active discussions with lenders to secure additional funding. CEO Akshaya Moondra had noted during the company’s June quarter earnings call that clarity on the AGR issue was a key factor delaying funding decisions.
Moondra added that the company has been in continuous engagement with the government, and a prompt resolution would enable Vodafone Idea to unlock funding, proceed with capital expenditure, and advance its broader business strategy.
In the past, Vodafone Idea has availed relief measures, including spectrum payment deferments and conversion of liabilities into equity. The company has urged both the government and the court to resolve the matter before March to avoid further delays in funding.
The apex court is hearing a plea filed by Vodafone Idea where the co is seeking to quash DoT’s claim, arguing it exceeds the scope of the Supreme Court’s earlier ruling on AGR liabilities.
Of the total demand, 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 company stated.
The telecom operator has requested a reconciliation of dues, citing duplication of figures and inconsistencies arising from earlier finalisation of financial accounts.
The Department of Telecom, however, maintains that the demand is not a reassessment but stems from adjustments made during the closure of pending accounts.
The verdict carries significant implications for Vodafone Idea, which is in active discussions with lenders to secure additional funding. CEO Akshaya Moondra had noted during the company’s June quarter earnings call that clarity on the AGR issue was a key factor delaying funding decisions.
Moondra added that the company has been in continuous engagement with the government, and a prompt resolution would enable Vodafone Idea to unlock funding, proceed with capital expenditure, and advance its broader business strategy.
In the past, Vodafone Idea has availed relief measures, including spectrum payment deferments and conversion of liabilities into equity. The company has urged both the government and the court to resolve the matter before March to avoid further delays in funding.
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