Vodafone Idea Limited (VIL) and Bharti Airtel had submitted a plea to the Supreme Court (SC) of India saying that the AGR (adjusted gross revenue) dues calculation by the telecom department was wrong. The telcos were talking about the arithmetic errors that happened. Now, according to PTI, the Supreme Court has decided it will consider the plea from the telcos. This has pushed the stock of Vodafone Idea up by 6% on Tuesday to Rs 17.66. Bharti Airtel's stock is also running in the green considering this development.
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Back in 2021, the Supreme Court of India has already once rejected the plea of the telcos seeking correction of errors in the demand of AGR dues. According to the DoT (Department of Telecommunications) calculation, telcos owe more than Rs 1 lakh crore to the government in the form of AGR.
However, Vodafone Idea and Bharti Airtel do not agree with that. The telcos believe that there has been an arithmetic error from the side of DoT in calculating the dues amount. As per DoT, Vodafone Idea (Vi) owed Rs 58,254 crore in AGR while Airtel owed Rs 43,980 crore. The Supreme Court had asked the telcos to clear the payment in 10 years.
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Looking at the position of the industry, the government eventually decided to give a moratorium period of four years starting from September 2021 to the telecom operators. However, now only a year remains and the telcos would want this to be settled as soon as possible. Now that the Supreme Court is considering the curative petition submitted by the telecom operators, it will be interesting to see which side the decision will favour. If the decision comes in favour of the telcos, it will be a major relief for them and will also boost their business activities in the country in the long run.
