Vodafone Idea shares plunge as SC dismisses plea on correction of AGR calculation
Mumbai: Shares of Vodafone Idea plunged over 7 per cent on Friday after the Supreme Court dismissed the plea by telecom operations to correct the alleged errors in Adjusted Gross Revenue (AGR) calculation.
At around 12.20 p.m., shares of Vodafone Idea on the BSE were trading at Rs 8.58, lower by 7.24 per cent from its previous close.
A bench headed by Justice L. Nageswara Rao said all applications dismissed.
On Monday, the apex court already said it would pass its order on applications filed by Vodafone Idea, Bharti Airtel and Tata Tele Services Ltd, alleging arithmetical errors in calculation of AGR dues payable by them.
The top court, citing an earlier order in the matter, had noted the order clearly point out that no re-assessment of AGR related dues can be done.
The telcos submitted that arithmetical errors can be rectified and there are cases of duplication of entries.
Senior advocate Mukul Rohatgi, representing Vodafone Idea, had submitted they were not blaming the Department of Telecommunications (DoT) for it, and there are arithmetical entries.
Rohatgi added that they want to bring these errors to the attention of concerned department, for their rectification.
The bench reiterated that the apex court order had made it clear that there cannot be any re-assessment.
In September last year, the top court had given 10 years’ time to telcos, who were struggling to pay Rs 93,520 crore in AGR dues outstanding amount to the government.
The apex court had said that telecom operators shall make the payment of 10 per cent of the total dues as demanded by DoT by March 31, 2021. The bench had said the rest of the amount was to be paid in yearly installments commencing from April 1, 2021 to March 31, 2031.
Shares of Bharti Airtel, however, were trading higher.
At around 12.20 p.m., its shares on the BSE were trading at Rs 553.25, higher by Rs 6.75 or 1.24 per cent from its previous close.