InvestorQ : How will Vodafone Idea be impacted by the Court order that the full dues will have to be paid on the AGR dispute?
Anu Biswas made post

How will Vodafone Idea be impacted by the Court order that the full dues will have to be paid on the AGR dispute?

Answer
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Neelam Naik answered.
3 months ago


Vodafone Idea has already told the Supreme Court that it was in no position to furnish additional bank guarantee having already incurred cumulative losses of Rs.1 trillion in the last few quarters. Both Bharti and Vodafone have accepted their AGR liability in part but they want to set a more reasonable amount and also a 20 year payment period.

Vodafone Idea owes a sum of Rs.58,254 crore in AGR dues to the government of which it has just paid Rs.6854 crore. Bharti owes Rs.25,976 crore after paying Rs.18,000 crore but it has also furnished a bank guarantee of Rs.10,000 crore to the court. Even Bharti Airtel had refused to furnish any further guarantees to the court at this juncture.

It may be recollected that after SC pulled up the DOT and the government for sending AGR notices to non-telecom PSUs, the DOT has withdrawn 96% of the AGR demand from PSUs amounting to Rs.370,000 crore. Supreme Court has sought last five year financials from Vodafone to make its own assessment if the company was in a position to pay.