Vodafone Idea shares tank over 12% on AGR dues waiver uncertainty

At 12 PM, Vodafone Idea shares were trading at ₹8.80 apiece on NSE, falling 5.98%.

The Supreme Court’s order allowing the government to review the adjusted gross revenue (AGR) dues applies only to the additional dues from 2016–17, according to the order copy. Earlier, on October 27, reports said the Centre was open to reconsidering Vodafone Idea’s request in the AGR case, and the Court allowed it since the matter falls under the government’s policy domain.

Thursday’s order specifically applies to Vodafone Idea due to the unique circumstances of its case.

VIL has sought a direction from the DoT to "comprehensively reassess and reconcile all AGR dues for the period up to FY 2016-17 following the 'Deduction Verification Guidelines'" dated February 3, 2020.

A bench of Chief Justice B. R. Gavai and Justice K. Vinod Chandran passed the order while hearing a writ petition filed by Vodafone Idea challenging the fresh AGR-related demands raised by the Department of Telecommunications (DoT).

The company argued that the additional claims were unjustified, as its liabilities had already been settled under the Supreme Court’s 2019 judgment on AGR dues.

Adjusted gross revenue (AGR) is the income figure used to calculate the licence fees and spectrum charges that telecom companies must pay to the government.

Earlier this year, in a setback to telecom majors, including Bharti Airtel and Vodafone Idea, the apex court refused to review its 2021 order rejecting their pleas for rectification of alleged errors in the calculation of AGR dues payable by them.

In September 2020, the top court fixed a time frame of 10 years for telecom service providers struggling to pay ₹93,520 crore of AGR-related dues to clear their outstanding amount to the government.

Vodafone Idea's AGR dues

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.