Supreme Court defers Vodafone Idea AGR hearing to October 13
What's the story
The Supreme Court of India has once again postponed the hearing of Vodafone Idea's (Vi) petition challenging an additional demand of ₹9,450 crore by the Department of Telecommunications (DoT). The case, which was to be heard today, is now scheduled for October 13. According to Bloomberg, the Indian government is exploring a one-time settlement of its longstanding multibillion-dollar dues from Vodafone Group's struggling local unit, aiming to bolster ties with the UK.
Legal strategy
Vodafone Idea's amended petition
Last week, Vi filed an amended petition in the Supreme Court, seeking waiver of interest and penalties on its AGR dues. The company argued that the disputed components of these dues are yet to be finalized. Earlier this year, the Indian government became a 49% shareholder in Vi through a debt-to-equity swap and has since acknowledged the need for a resolution. Last month, the government told the Supreme Court that "some solution may be required."
Financial burden
AGR dues and financial challenges
Vodafone Idea owes some ₹83,400 crore in AGR dues. The company has said its cash flows are insufficient to pay the dues. Former CEO Akshaya Moondra had said in August that early resolution of the AGR dispute was critical for securing bank funding. Vodafone Idea serves about 198 million subscribers and employs over 18,000 people.