SC Rejects Telcos’ AGR Modification Plea, Big Blow to Vodafone Idea

The Supreme Court on Friday rejected the appeal by Vodafone Idea, Bharti Airtel and Tata Teleservices to allow correction of errors in the telecom department’s adjusted gross revenue (AGR) calculations, dealing a big blow to Vodafone Idea (Vi) whose shares tanked 10% and left a could hanging over the telco’s viability.

The Supreme Court bench comprising Justice N Rao and Justice Aniruddha Bose ruled, “all applications dismissed”.

SC Rejects Telcos’ AGR Modification Plea, Big Blow to Vodafone Idea
SC Rejects Telcos’ AGR Modification Plea, Big Blow to Vodafone Idea

However, there is still no clarity on the different interpretation between the Department of Telecommunications (DoT) and the three telcos on the timing of the 10% upfront payment towards the AGR dues. DoT says Vodafone Idea, Airtel, Tata Tele should have paid another 10% of AGR dues by March 2021, and the balance spread over the next 10 years. But telcos maintain they have already paid more than 10%, and the next instalment is due only by March 2022.

SC Rejects Telcos’ AGR Modification Plea, Big Blow to Vodafone Idea
SC Rejects Telcos’ AGR Modification Plea, Big Blow to Vodafone Idea