InvestorQ : What do you see as the outcome of the Supreme Court judgment on the telecom companies like Bharti, Vodafone Idea and others like Power Grid and Oil India?
Anjana Aiyar made post

What do you see as the outcome of the Supreme Court judgment on the telecom companies like Bharti, Vodafone Idea and others like Power Grid and Oil India?

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Arya Nanda answered.
4 months ago
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The Supreme Court observations on the subject of adjusted gross revenues (AGR) only reiterated the past judgment. Clearly, the telecom companies like Bharti Airtel and Vodafone will have to shell out large sums of money and there is no respite. That explains why Vodafone corrected sharply while Bharti was only marginally down. Airtel has already created a war chest to repay the AGR dues and that should work in their favour. Jio is anyways hardly affected by the decision. SC also came down heavily on the DOT interpretation of the DOT to extend this AGR to non-telecom PSUs also including the likes of GAIL, Power Grid and Oil India among others. That should be positive for these PSUs. Supreme Court has asked DOT to withdraw the demand from these non-telecom PSUs. The next hearing in the AGR case is scheduled on 18 June.

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