Vodafone Idea shares have tanked nearly 10 per cent after the Supreme Court order’s on Adjusted Gross Revenue (AGR). The apex court has given telcos 10 years to clear AGR-related dues. Shares of Vodafone Idea were trading at Rs 9.15 (as on 12.43 pm at NSE).
In BSE, the shares of Vodafone Idea were trading at Rs 8.67.
The telecom company in April sought more time from the government for paying its AGR dues, reported Economic Times. It also fell short of submitting adequate bank guarantees to cover its spectrum payments.
As per self-assessment, telecom companies submit eight per cent of their AGR as license fees and about three or four per cent as spectrum usage charges.
Unlike Vodafone Idea, the share price of Bharti Airtel has gone up by nearly five per cent (as on 12.43 pm at NSE).
The AGR-related dues of telecom firms amount to about Rs 1.6 lakh crore. The top court has asked telcos to pay 10 per cent of the outstanding amount by March 31, 2021.
A three-judge bench by Justice Arun Mishra said that the firms will have to pay instalments by February 7 of every succeeding year. In case any firm defaults on paying due by the deadline, interest will be accrued. Apart from this, non-payment will be considered contempt of court.
The SC will also not entertain requests related to the revaluation of AGR dues.
The central government was willing to provide 20 years for paying dues, but the apex court has given 10 years, CNBC-TV-18 reported quoting Kapil Sibal, who represented Bharti Airtel.
Now, it is up to the telecom companies to decided if they want to file a review petition.
The Department of Telecommunications (DoT) in March requested the SC to provide 20 years to telcos for payment of AGR dues, which included spectrum usage charge, license fee, interest, penalty and interest on the penalty.
However, the top court at that time had reservations about giving 20 years to the telecom firms.
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