Vodafone Idea Drags AGR Battle Back to Supreme Court                                              

Vodafone Idea asks the Supreme Court to grant $5 billion in relief, stating that losing competition and confidence in the industry could harm the country’s investors.

Vodafone Idea has once more approached the Supreme Court after the government refused to exempt the telco from paying tens of thousands of crores in penalties and interest. Both Vodafone Group and Aditya Birla Group contend that unfair charges jeopardize their plans to flourish in India’s telecommunications sector.

On 29 April, the Ministry of Communications turned down the waiver request and reaffirmed that the 2019 AGR verdict on revenue calculation cannot be reversed. About 57% of what Vodafone Idea owes comes from penalties and interest they have paid.

The government’s actions have only included converting debt into shares and this has increased the Centre’s share to 49 per cent. Funds are offering a tough path and CEO Akshaya Moondra shares that Idea will not survive another four years unless the situation shifts. Such a development could influence investor confidence in the Indian telecom industry.

According to analysts, Vodafone Idea has faced the biggest difficulties from the AGR judgments, since Reliance Jio and Bharti Airtel have coped better. In the coming days, the Supreme Court will decide whether they will review the ministry’s tough decision on financial aid or leave it as it is.

At this time, Vodafone Idea depends on debt to operate, as the company awaits help from the law to save its remaining cash.