The Supreme Court on Monday, May 19, rejects telecom primary Bharti Airtel Ltd, Vodafone Idea Ltd. on their adjusted gross revenue dues. The bench, along with Justices J.B. Pardiwala and R. Mahadevan, said the problem falls under the government’s domain and the court might not intrude. Amid insolvency fears mounting for Vodafone Idea, the court advised the telecom operator, ‘Don’t make us a celebration’ for the duration of the hearing.
Supreme Court Put Financial Pressure on Vodafone
However, Vodafone Idea argued that it had already paid around Rs 50,000 crore. It highlights that the authorities now hold almost 50 % stake in the company. The court room spoke back that while the authorities are free to increase assistance, the Court can’t compel them to accomplish that.
The bench also deemed the petition under scrutiny as both “stunning” and “misconceived”. Further, the courtroom directed telecom companies to explore other legal treatments, but not through the Court.
Vodafone seek support over AGR dues
The Department of Telecommunications, in a letter stamped April 29, stated the request for additional concessions on AGR liabilities “cannot be considered”. The Supreme Court referred to the fact that Vodafone Idea had already sought and obtained partial support. The government transformed spectrum-related dues worth Rs 36,950 crore into equity, growing its stake in the company to 49 %.
Vodafone Idea approached the legal authority once more earlier this month, looking for a support of over Rs 45,000 crore with regard to its AGR dues. The remand is scheduled for a hearing on Monday.
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