Vodafone Idea shares rise ahead of crucial AGR dues hearing
Vodafone Idea's shares nudged up over 1% on Monday, just ahead of a key Supreme Court hearing about an extra ₹5,606 crore in AGR dues for the 2016-17 financial year.
The case, led by Chief Justice B.R. Gavai, matters even more since the government now owns nearly half of Vodafone Idea.
AGR dues: DoT's estimate at ₹58,254 crore
This hearing could shape Vodafone Idea's future—and shake up India's telecom sector.
The company already owes tens of thousands of crores in AGR dues (with DoT's estimate at ₹58,254 crore and some sources citing up to ₹83,400 crore), to be paid over 10 years, and says this new demand would only make its cash crunch worse.
With the government holding a big stake, everyone's watching for a quick solution.
Vodafone Idea argues penalties and interest should kick in later
Vodafone Idea argues that penalties and interest should kick in only after disputed dues are sorted out, while both DoT and the company agree on the need for reconciliation of accounts.
While earlier appeals didn't get relief from the Supreme Court, talks are still happening and there's hope for some agreement before October 27.