The Supreme Court has delivered a significant setback to India’s telecom sector by rejecting pleas from major telecom operators, including Vodafone Idea (Vi) and Bharti Airtel, to re-calculate their Adjusted Gross Revenue (AGR) dues. The telecom companies had sought a re-computation of their dues, claiming there were “arithmetical errors” in the Department of Telecommunications’ (DoT) calculation. However, the court dismissed their curative petitions, leaving Vodafone Idea in particular in a precarious financial position.
This ruling exacerbates Vodafone Idea’s already severe financial troubles, as the company is saddled with AGR liabilities exceeding ₹70,000 crore. Following the court’s decision, Vi’s stock plunged nearly 10%, reflecting market concerns about the company’s future. Bharti Airtel, on the other hand, saw its stock rise marginally, as investors anticipate that Airtel may benefit from Vi’s weakened state.
This marks a continuation of the long-standing AGR dispute, which has imposed massive financial burdens on telecom operators in India. With limited legal options left, Vodafone Idea is expected to face further challenges in maintaining its operations and meeting its debt obligations (India Today)(MoneyControl)(Goodreturns).
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