Vodafone Idea surges 12% as SC defers AGR case to Sept 26; notes need for finality

Vodafone Idea Ltd (Vi) saw its shares surging over 12 per cent in Friday’s trade after the Supreme Court deferred hearing its petition against the Department of Telecommunications’ (DoT) fresh demand of Rs 9,450 crore in additional Adjusted Gross Revenue (AGR) dues to September 26. The SC bench, however, observed: “There needs to be some finality to these proceedings.” ET reported this in a report. Business Today could not independently verify the accuracy.

Following the development, the Vodafone Idea stock rose 12.35 per cent to hit a high of Rs 8.82 apiece on BSE, taking its 2-week rise to 18 per cent. VIL stock is up 29.14 per cent in the past one month/    

The matter was heard by a bench led by Chief Justice B R Gavai, along with Justices K Vinod Chandran and N V Anjaria. Senior Advocate Mukul Rohatgi appeared for the telco, while Solicitor General Tushar Mehta represented the Centre.

“In light of larger public interest, the government has already infused 49 per cent equity. Some solution may be required, subject to SC approval. The Court may also consider the fact that circumstances have changed since the earlier petition,” Mehta submitted as per the report.

The telecom operator had challenged DoT’s notice earlier this week, arguing that the new demand goes beyond the parameters set in the apex court’s previous ruling on AGR liabilities. In its plea, Vodafone Idea sought to nullify the fresh demand and called for a comprehensive reconciliation of dues, especially those accrued before FY17.

(More to come)