Vodafone Idea AGR case: Supreme Court defers hearing to October 6; shares drop 9%

Last week, the top court had deferred hearing the debt-laden telecom firm’s plea. According to a news report, the government had told the Supreme Court that it is not opposing VI’s plea; however, some solutions are required.

The telecom company had moved to the Supreme Court seeking reassessment of additional AGR this month.

Vodafone Idea’s counsels had urged the court for an early hearing of the matter.

The government holds a 49% stake in Vodafone Idea, making it the largest shareholder, though it is not classified as a promoter.

Meanwhile, various news reports suggested that the government had made it clear that it won't support the debt-laden carrier. Minister of State for Communications Chandra S Pemmasani told the channel that the government had already extended support by converting nearly ₹53,000 crore of dues into equity in 2021 and getting a 49% stake in the company.

It further stated that promoters Aditya Birla Group (ABG) and the UK’s Vodafone will have the option to dilute their stake, as the government wants to stay invested for some more time.

Vodafone Idea owes nearly ₹83,400 crore in AGR dues, and the annual payments currently stand at ₹18,000 crore, scheduled from March 2026. When combined with interest and penalties, Vodafone Idea’s dues stand at more than ₹2 lakh crore.

As per the report, one of the relief options is an additional two-year pause on paying the statutory dues under moratorium at present. The DoT has proposed to give the company extra time to pay its dues, along with smaller annual payouts and a waiver on penalties and interest penalties on AGR payment, the report said.

At 11:33 AM, shares of Vodafone Idea were trading at ₹8.21 apiece on the National Stock Exchange, slumping 5.41%.

For a month’s time, the telecom firm’s shares have zoomed 26%. In the last six months, the stock has climbed over 20%. Since the beginning of the year, it has advanced nearly 6%.