Vodafone Idea Plea on AGR Dues Rejected by Supreme Court

Vodafone Idea Limited (VIL) did not receive the help it was looking for from the Supreme Court (SC). The apex court, on Monday, decided to reject the plea the telco had made on the AGR (adjusted gross revenue) dues matter. The telco had sought a waiver of more than Rs 45,000 crore in AGR dues. Vi had said that it is important for the company’s survival. Upon the plea made by Vi, even Bharti Airtel had approached Supreme Court and said that a relief offered to Vi should also be offered to other telcos in an equitable basis.

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But now, there’s no relief for anyone. A Supreme Court bench led by Justice JB Pardiwala said ttaht the petitions are “misconceived”. The looming AGR dues have restricted Vi’s ability to raise funds via debt from the banks. The telco’s (Vi) Rs 55,000 crore capex plan depends heavily on the funds from banks or lenders. The lenders are looking for a clarity on the AGR dues. This decision from the SC should give the much needed clarity.

The Indian government has already helped Vi plenty in the recent past. The telco’s AGR dues and SUC (Spectrum Usage Charges) were deferred by the government for four years in 2021 as part of a relief package. The government further reduced Vi’s interest dues on the AGR by converting plenty of the dues into equity for itself.