Vodafone Idea , one of India's leading telecom operators, has taken a significant legal step in its ongoing battle over Adjusted Gross Revenue (AGR) dues. The company has filed a fresh petition in the Supreme Court, seeking relief from a substantial financial burden.

New Petition Details

The telecom giant has approached the Supreme Court with a new petition aimed at waiving the penalty and interest on an additional AGR demand of Rs 9,450.00 crore. This move comes just ahead of a crucial hearing scheduled for October 6, where the court will consider the company's challenge against what it claims is a duplication of AGR dues.

Breaking Down the Demand

The Rs 9,450.00 crore demand is split into two components:

• Rs 2,774.00 crore related to the post-merger entity
• Rs 5,675.00 crore pertaining to pre-merger Vodafone Group liabilities

Vodafone Idea argues that this demand exceeds the scope of the court's earlier AGR ruling, potentially setting the stage for a significant legal debate.

Existing AGR Dues and Waiver Request

The company's financial obligations are substantial:

• Total AGR dues currently stand at over Rs 83,000.00 crore
• Vodafone Idea has sought a waiver on Rs 45,000.00 crore of these dues

This new petition underscores the company's ongoing efforts to manage its considerable debt burden and improve its financial position.

Government's Stake in Vodafone Idea

In a notable development earlier this year, the Indian government became the largest shareholder in Vodafone Idea:

• The government acquired shares worth Rs 36,950.00 crore in lieu of spectrum dues in March
• This acquisition added to its existing 33% stake obtained in 2023

The government's significant stake in the company adds an interesting dimension to the ongoing legal and financial maneuverings.

Looking Ahead

The upcoming Supreme Court hearing on October 6 will be a crucial moment for Vodafone Idea. The court's decision on this new petition and the company's challenge against the duplication of AGR dues could have far-reaching implications for the telecom operator's financial future and its ability to compete in India's dynamic telecommunications market.

As the legal proceedings unfold, stakeholders in India's telecom sector will be watching closely to see how this latest development impacts not only Vodafone Idea but potentially the broader industry landscape as well.

Vodafone Idea , one of India's leading telecom operators, is facing another delay in its legal battle as the Supreme Court postpones the hearing of the company's petition against an additional Adjusted Gross Revenue (AGR) demand. The next hearing is now scheduled for October 6.

Legal Challenge and Government Stake

The telecom giant is contesting the Department of Telecom (DoT)'s demand of ₹9,450.00 crore, arguing that it exceeds the scope of the court's previous AGR ruling. This legal battle comes at a crucial time for Vodafone Idea, with the Centre holding a substantial 49% stake in the company. This stake was acquired in 2021 as part of a support package that converted ₹53,000.00 crore of dues into equity.

Breakdown of Disputed Amount

The contested ₹9,450.00 crore can be broken down into two main components:

1. ₹2,774.00 crore related to post-merger dues from the Vodafone-Idea consolidation in August 2018
2. ₹5,675.00 crore concerning pre-merger Vodafone Group liabilities

Government's Stance

While the Centre does not oppose Vodafone Idea's plea, it is seeking a solution to the dispute. However, government ministers have indicated that there are no plans for additional relief or for converting the company into a Public Sector Undertaking (PSU).

Market Response

Despite the ongoing legal challenges, the market has shown positive signs:

• Vodafone Idea shares have gained 11.00% since the last hearing
• Over the past month, the stock has surged by 29.40%

However, it's worth noting that the share price remains below the Follow-on Public Offer (FPO) price of ₹11.00.

Looking Ahead

As the Supreme Court hearing is now postponed to October 6, stakeholders will have to wait longer for a resolution. The outcome of this AGR dues dispute could have significant implications for Vodafone Idea's financial health and its future in India's competitive telecom sector. The repeated postponements add an element of uncertainty to the company's situation, potentially affecting investor sentiment and the company's strategic planning.