Vodafone Idea Moves Supreme Court Against Rs 9,450 Crore AGR Dues; VI Share Price Jumps 2% Amid Legal Pushback

Vodafone Idea has approached the Supreme Court to contest an additional demand of Rs 9,450 crore in adjusted gross revenue (AGR) dues from the Department of Telecommunications (DoT). This move comes as the telecom company seeks a suspension of these dues, which it claims exceed previous court rulings. The company's shares rose by 2% following this development.

The government has already converted Rs 36,950 crore of Vodafone Idea's spectrum dues into equity, making it the largest shareholder. Despite this, the government has ruled out any further relief for the financially troubled telecom firm. Vodafone Idea is now expected to manage its challenges through internal strategies or market partnerships.

Vodafone Idea AGR Dues and Legal Challenge

In its petition to the Supreme Court, Vodafone Idea has disputed DoT's revised calculations that cover dues up to FY17 and updated license fee obligations through FY19. The company argues that certain demands amounting to Rs 2,7447 crore for FY18-19 have been duplicated and require reconciliation. They are seeking a recalculation starting from before FY17.

The total demand includes Rs 5,606 crore for dues up to FY16-17, which had already been settled by the Supreme Court. Of the Rs 9,450 crore demand, approximately Rs 2,774 crore pertains to post-merger liabilities of Idea Group and Vodafone Idea after their consolidation in August 2018. Meanwhile, Rs 5,675 crore relates to pre-merger liabilities of Vodafone Group.

Government's Stance on Vodafone Idea Relief

Minister of State for Communications Chandra Sekhar Pemmasani stated that there are no plans for additional concessions beyond what has already been extended. The government's conversion of dues into equity was a significant step, but further relief is not being considered. This leaves Vodafone Idea with limited options for addressing its financial woes.

Vodafone Idea continues to face high debt levels and intense competition from Reliance Jio and Bharti Airtel. The company's survival without government support remains uncertain as it grapples with outstanding AGR-related dues. The telecom firm must explore fundraising or strategic partnerships to navigate its current challenges.

Government's 33% Stake in Vodafone Idea

The Indian government previously acquired around a 33% stake in Vodafone Idea against dues worth Rs 16,000 crore in 2023. Despite these measures, Vodafone Idea's future remains precarious without further governmental assistance.

Vodafone Idea Share Price Today

Vodafone Idea Ltd shares were trading at Rs 7.44 as of 11:08 AM on September 10, showing a gain of Rs 0.17 or 2.34% for the day. The stock opened at Rs 7.33 and went on to hit an intraday high of Rs 7.51, while the low touched Rs 7.29 during early trading hours.

In terms of broader performance, Vodafone Idea's current trading level is still significantly below its 52-week high of Rs 13.77. However, it remains well above its 52-week low of Rs 6.12, indicating some recovery momentum in recent sessions.