Vodafone Idea Share Price Falls as Supreme Court Adjourns AGR Due Case Hearing To Oct 27; Stock Under Pressure

The Supreme Court of India has postponed consideration of Vodafone Idea's (Vi) petition seeking relief from interest, penalties and penal interest associated with its Adjusted Gross Revenue (AGR) dues, which were mandated by the Department of Telecommunications (DoT). Following it, shares of Vi decline by 2%.

Vodafone Idea AGR Due Case: Supreme Court Adjourns Plea, Next Hearing on 27 October

The telecom giant is contesting a demand of Rs 5,606 crore for the fiscal year 2016-17 and is requesting reassessment under the 2020 Deduction Verification Guidelines. The bench is slated to revisit the matter on October 27.

Vodafone Idea Share Price Today

As of 12:26 PM on October 13, shares of Vodafone Idea Ltd were trading at Rs 8.86, reflecting a decline of Rs 0.18 or 1.99% from the previous closing price. The stock opened the trading session at Rs 9.02, slightly lower than its recent highs and went on to touch an intraday high of Rs 9.19 and a low of Rs 8.71.

Over the past 52 weeks, the stock has reached a high of Rs 10.47 and a low of Rs 6.12. The company's stock remains under pressure due to concerns around its financial health and regulatory uncertainties.

Vodafone Idea, which has been under significant financial stress, filed the plea in response to DoT's insistence on collecting the full liability in accordance with prior Supreme Court rulings. In court proceedings, a law officer noted the government's near 50% equity stake in Vi, underscoring how pivotal the company's viability is to public interest as well.

Vodafone Idea AGR Dispute: Legal Backdrop and Previous Rulings

Telecom operators-including Vi and Bharti Airtel have long sought review of earlier Supreme Court orders denying adjustments to AGR calculations. In July 2021, the top court refused to re-examine its earlier ruling, which had rejected deviance claims in the calculation of AGR dues.

That 2021 order reaffirmed the court's 2020 decision, which had mandated telecom firms to settle Rs 93,520 crore in AGR liabilities over a ten-year schedule.

The earlier rulings also clarified that telecom operators had a set payment timetable: 10% of the total due by March 31, 2021, followed by annual instalments from April 1, 2021, to March 31, 2031. The Supreme Court's 2019 judgment on AGR made clear that the DoT's demand was final and that no further reassessments or disputes would be entertained.

What Vodafone Idea Is Seeking

Vi's current plea seeks a "comprehensive reassessment and reconciliation of all AGR dues up to FY 2016-17", leveraging the deduction verification guidelines published on February 3, 2020. These guidelines allow claims for deductions that telecom companies argue were erroneously excluded from earlier AGR computations, including non-telecom income and other adjustments.

In past submissions, telecom operators have pointed out arithmetic discrepancies, duplication errors, and miscounting of income components. However, the court has been reluctant to revisit decisions, citing legal finality in AGR obligations.

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