Private sector telecom service provider Vodafone Idea has filed a fresh petition in the Supreme Court seeking a waiver of interest and penalty in the matter related to its adjusted gross revenue-related dues owed to the central government’s Department of Telecommunications (DoT), sources told Zee Business.
The development comes at a time when the debt-ridden telecom firm is awaiting a hearing in its earlier petition in the top court on October 6.
For the new petition, the company has cited the Supreme Court’s previous order in the matter.
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Last week, the apex court adjourned a hearing in the case to October 6, having earlier admitted the telecom operator’s petition challenging the telecom department’s demand for an additional levy for the 2016-17 period. The telecom department has demanded outstanding dues amounting to Rs 9,450 crore from Vodafone Idea whereas the telecom firm has argued that the amount exceeds the scope of earlier rulings that capped the liabilities up to FY17 and disallowed reassessments.
The dues include Rs 2,774 crore related to post-merger Vodafone Idea and Rs 5,675 crore related to pre-merger Vodafone Group liabilities. Vodafone Idea has also claimed that the telecom department’s calculations include duplications and clerical errors. It has said that the liabilities have already been calculated and cannot be changed or increased.
In May, the Supreme Court had rejected a joint plea by telecom operators, including Vodafone Idea, seeking relief in the payment of their interest on the dues, penalty and interest towards their respective AGR liabilities citing severe financial constraints. The top court had found their petitions to be “misconceived”.
Vodafone Idea — a joint venture between homegrown Aditya Birla Group and UK-based Vodafone Group — has struggled to clear its outstanding spectrum and revenue-sharing dues since a 2019 Supreme Court order that widened the scope of revenues on which the dues are assessed.
To help Vodafone Idea, the central government has over time converted part of the dues into equity and increased its stake in the company to 48.99 per cent. As of March 31, Vodafone Idea total debt stood at approximately Rs 2.42 lakh crore, including long- and short-term borrowings.
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Vodafone Idea shares
On Monday, the Vodafone Idea stock rose 2.7 per cent to close at Rs 8.24 apiece on BSE, in a Mumbai market where benchmark indices declined for the seventh session in a row amid concerns about the potential impact of harsh US tariffs on economies like India.
