Mumbai, Dec 31 (NationPress) Vodafone Idea clarified on Wednesday in light of reports suggesting that the Union Cabinet had granted a five-year moratorium and frozen the company’s adjusted gross revenue (AGR) dues, which amount to Rs 87,695 crore.

In a filing to the stock exchange, Vodafone Idea stated that these reports were speculative and emphasized that it has not received any official notification confirming such a decision.

“We have not received any communication from the Government regarding the aforementioned reports,” the telecom entity mentioned in its exchange filing.

“We will take necessary action as soon as any developments necessitate disclosure,” the company added.

This clarification follows increased market activity in response to the reports. After the initial news, Vodafone Idea shares experienced significant selling pressure.

The stock fell by as much as 15.01 percent, or Rs 1.81, dropping to Rs 10.25 during intra-day trading.

By the end of the trading session, the shares closed at Rs 10.76, down Rs 1.31 or 10.85 percent on the Bombay Stock Exchange (BSE).

Earlier that day, multiple sources had reported that the Union Cabinet had approved a significant relief package for the financially burdened telecom operator by freezing AGR dues of Rs 87,695 crore as of December 31.

The reports indicated that the frozen amount would be payable over a lengthy span of 10 years, beginning from FY32 and continuing until FY41, providing the company with much-needed financial relief.

It was also suggested that the frozen dues would later be reviewed by the Department of Telecommunications based on audit findings and verification guidelines.

A committee appointed by the government is also expected to make a final decision regarding the reassessed amount.

However, the proposed relief does not apply to AGR liabilities from FY18 and FY19. These dues, as determined by a 2020 Supreme Court ruling, must be settled between FY26 and FY31 according to the existing repayment schedule.