Shares in Vodafone Idea were choppy in trade on June 11 and following the Supreme Court hearing on adjusted gross revenue (AGR) today shares fell to day's low of Rs. 9.74 after Justice Mishra said extension on repayment cannot be allowed just on 'gentleman's promise'.
As per CNBC TV 18 sources, SG tells SC, telecom companies must provide some security for satisfying the court. And in this context the apex court made the following observations; how many years is government proposing on AGR payment? What shall be the guarantee that telcos will pay as per timeframe? The security which telcos are ready to offer? Are telcos willing to submit personal guarantees by directors?
#AGR VERDICT | Supreme court strikes down over Rs 4 lakh cr demand against PSUs, seeks undertaking from telecom companies to secure payment in staggered manner— CNBC-TV18 (@CNBCTV18Live) June 11, 2020
Alert: Supreme Court to next hear the case on June 18 pic.twitter.com/mDEEWqhjrO
To this Voda Idea said to the Honourable Supreme Court they don't have enough funds to issue bank guarantee of Rs. 50,000 Crore.
In respect of Vodafone Idea, Department of Telecom claimed that the remaining payable sum by the telcom is Rs. 53000 crore but the same as per Vodafone is Rs. 21,500 crore. Until now the company has cleared Rs. 6900 crore.
As per the department of telecom's estimate, the court ordered telcos to clear dues worth Rs. 1.47 lakh crore.
The hearing is crucial as it shall be decided whether telcos will be allowed to spread AGR dues repayment over 20 years or less.