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Why SC’s clarification on AGR dues is a big lifeline for Vodafone Idea
The Supreme Court allowed reassessment of Vodafone Idea's AGR dues including penalties and interest, covering liabilities estimated at nearly Rs 2 trillion, easing financial pressure.
- On November 3, the Supreme Court of India allowed the Government of India to reassess Vodafone Idea Ltd’s adjusted gross revenue dues up to financial year 2016-17, including interest and penalties, clarifying relief covers both additional and reassessed demands.
- Vi's petition argued on September 18 to cancel the additional AGR demand and sought waivers of penalties and interest, citing ongoing disputes with the Department of Telecommunications.
- The DoT had sought about Rs 5,600 crore, and an earlier order noted Vi sought relief only against an additional Rs 9,500 crore, with total liabilities around Rs 77,000 crore.
- Post the court's oral observation Monday, Vodafone Idea Ltd saw its company scrip jump nearly 10% as investors reacted to the major relief from reassessing AGR dues.
- The government now owns close to 49% of Vodafone Idea after Rs 36,950 crore equity conversion, up from nearly 23%, with shares acquired at a premium of more than 47%, while Vi faces annual payments of Rs 18,000 crore beginning March 2026.
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10 Articles
10 Articles
Why SC’s clarification on AGR dues is a big lifeline for Vodafone Idea
Vi is among the three privately-owned telecom operators in the country, with the government seemingly intent on keeping India’s telecom ecosystem a three-horse race. However, Vi’s precarious financial situation raises concerns about its longevity in the market
·India
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Supreme Court answers Vodafone Idea's call, allows review of all AGR liabilities
Vodafone Idea receives significant relief from the Supreme Court. The apex court allows the government to create a special package for the company's AGR liabilities. This move is expected to help Vi secure fresh capital and potentially lead to operational control by a private equity firm. Upcoming payments are scheduled for March next year.
·India
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Coverage Details
Total News Sources10
Leaning Left2Leaning Right4Center0Last UpdatedBias Distribution67% Right
Bias Distribution
- 67% of the sources lean Right
67% Right
L 33%
R 67%
Factuality
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