Telecom companies Vodafone Idea to approach Court for waiver of interest

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Telecom companies Vodafone Idea to approach Court for waiver of interest
Telecom companies Vodafone Idea to approach Court for waiver of interest

Supreme Court has instructed telecom companies to deposit the dues sought by the government in three months in accordance with the court’s Thursday order backing a broader definition of adjusted gross revenue (AGR). “We give (telecom companies) three months’ time to deposit the amount, which is due and compliance be reported,” said the court order uploaded on its website Friday.

However, Vodafone Idea will seek a waiver of interest and penalties payable on its licence fee dues. Analysts said the telco could be bound for bankruptcy if it’s asked to shell out $4 billion (Rs 28,309 crore) after the Supreme Court ruled on the definition of adjusted gross revenue for telecom companies.

The telco is reviewing the ruling and plans to engage with the Department of Telecommunications to urge it to “consider granting relief, including a waiver of interest and penalties.”

Vodafone Idea’s stock plunged to a 52-week low of Rs 3.66 on Friday before closing at Rs 4.11 on the BSE. The shares had plunged over 23% after the court’s ruling on Thursday.

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