Will the Supreme Court Hear Vodafone-Idea's AGR Dues Plea on October 13?
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Synopsis
The Supreme Court is set to hear Vodafone Idea's plea regarding AGR dues on October 13. The telecom giant seeks relief from penalties and interest, citing genuine reasons for its non-payment. This case could have significant implications for the telecom sector, especially given the government's stake in the company and the urgency for resolution.
Key Takeaways
- Supreme Court hearing on October 13
- Vodafone Idea seeks waiver of dues
- Impact on telecom sector
- Government holds significant stake
- Recent financial performance
New Delhi, Oct 6 (NationPress) The Supreme Court announced on Monday that it will consider Vodafone Idea's (Vi) request for a waiver of interest, penalties, and interest on penalties related to its adjusted gross revenue (AGR) dues, as mandated by the Department of Telecommunications, on October 13.
In its latest filing, Vi aims to modify its earlier petition, which sought to invalidate the DoT's additional AGR demand of Rs 9,450 crore for FY19.
The revised application now requests a waiver of interest on the principal AGR dues, along with penalties and associated interest.
The telecom provider asserted that its failure to pay the AGR dues was due to legitimate reasons, thus contesting the imposition of any penalties.
Previously, on September 26, the Supreme Court had postponed the hearing of the Vodafone Idea AGR case to October 6 at the request of the government for additional time.
During prior discussions, Solicitor General Tushar Mehta, representing the DoT, sought more time to address Vodafone Idea's petition, which the company did not contest.
On September 19, the Centre informed the Supreme Court that it did not oppose Vodafone Idea's petition, but emphasized the necessity for a resolution due to the government's substantial stake in the company.
The Supreme Court has highlighted the urgency for a conclusive decision on this matter.
After converting Vodafone Idea's interest liabilities into equity, the government emerged as the largest shareholder with a 49 percent stake, though it does not hold a promoter status.
As of 3:06 PM, Vodafone Idea shares dropped 3.85 percent, trading at Rs 8.48.
Previously, Vodafone Idea reported a net loss of Rs 6,608 crore, an increase from Rs 6,432 crore in the same previous fiscal period (Q1 FY25).
Nevertheless, the company’s operational revenue climbed by 5 percent to Rs 11,023 crore, up from Rs 10,508 crore in the corresponding quarter last year.
Point of View
It is essential to recognize the complexities surrounding Vodafone Idea's plea. The case highlights the challenges faced by telecom companies in India and the government's role as a stakeholder. A balanced resolution is crucial, ensuring that the interests of both the company and the public are safeguarded, while promoting healthy competition in the telecom sector.
NationPress
06/10/2025
Frequently Asked Questions
What is Vodafone Idea's plea about?
Vodafone Idea is seeking a waiver of interest, penalties, and interest on penalties related to its AGR dues mandated by the Department of Telecommunications.
When will the Supreme Court hear this case?
The Supreme Court will hear Vodafone Idea's plea on October 13.
What is the amount involved in Vodafone Idea's AGR dues?
Vodafone Idea faces an additional AGR demand of Rs 9,450 crore from the financial year 2019.
What is the significance of this case?
This case could have major implications for the telecom sector, especially given the government's stake in Vodafone Idea.
How has Vodafone Idea performed recently?
Vodafone Idea reported a net loss of Rs 6,608 crore, while its revenue from operations rose 5 percent to Rs 11,023 crore.
