Vodafone Idea Ltd.'s stock dropped 6% on the NSE during Friday's intraday trade after the Supreme Court rejected review petitions from telecom firms seeking relief on their adjusted gross revenue dues.
The ruling solidifies the Department of Telecommunications' calculations, leaving no further legal recourse for the telecom operators.
The Supreme Court's decision, delivered on Feb. 14, dismissed challenges to its 2021 verdict, which had refused to allow re-computation of AGR dues despite claims of miscalculations. Telecom companies, including Vodafone Idea, had argued that the DoT's figures contained errors, with some payments not being accounted for, leading to inflated liabilities.
The government had reportedly been considering waiving 50% of the interest and 100% of the penalties associated with AGR dues, while the principal amount remains intact.
This latest legal setback intensified the financial strain on Vodafone Idea, which has been battling subscriber losses, a heavy debt burden, and a need for capital infusion to stay relevant in the telecom landscape.
"The government's intent is clear that it will provide support if need arises. Moreover, it is cognisant that support will be required on this issue. The government is the biggest stakeholder in this process; therefore, we are confident that a solution will be found," Vodafone's Chief Executive Officer Akshaya Moondra had said on the topic of AGR dues during the third quarter post-earnings call.
Shares of Vodafone Idea ended 4.98% lower at Rs 8.64 per share, while Indus Towers' stock closed 3.8% down at Rs 348.75 apiece. Bharti Airtel's stock bucked the trend to end 0.02% higher at Rs 1,714.60 per share. The benchmark NSE Nifty 50 ended 102.15 points lower, or 0.44% down, at 22,929.25 on Friday.
RECOMMENDED FOR YOU

Vodafone Idea AGR Dues: No Relief Planned At The Moment, Says Union MoS


Vodafone Idea AGR Dues: No Decision Taken By Government Yet, Says Scindia — Profit Exclusive


Vodafone Idea Shares Fall Over 12% As Supreme Court Rejects AGR Plea


Government Rejects Vodafone Idea’s AGR Relief Plea Ahead Of Supreme Court Hearing
