Shares of Vodafone Concept Ltd (VI) fell 4% on sixth October after touching a day’s excessive of Rs 8.95. This occurred because the Supreme Courtroom deferred its verdict on the corporate’s plea relating to extra adjusted gross income (AGR) dues.
The listening to has now been rescheduled to thirteenth October, following two postponements final month.
In accordance with Bloomberg, the Centre is contemplating a decision for Vodafone Concept’s dues to strengthen UK ties. This might probably happen by a one-time settlement. The settlement might embody a waiver of curiosity and penalties, adopted by concessions on the principal quantity. Officers are reportedly engaged on a framework.
Timeline of hearings:
- nineteenth September: The Centre informed the court docket it didn’t oppose Vodafone Concept’s plea however sought an answer as it is usually an fairness holder. The court docket deferred the listening to to twenty sixth September.
- twenty sixth September: The Solicitor Basic, representing the Centre, sought extra time. Vodafone Concept didn’t object, and the court docket adjourned till sixth October.
- sixth October: The decision was anticipated, however the matter was adjourned once more.
The plea:
Vodafone Concept has challenged DoT’s demand of Rs 9,450 crore in extra AGR dues. They argue the declare goes past the Supreme Courtroom’s earlier ruling on AGR liabilities. The DoT defended the demand, stating that it was not a reassessment however slightly a niche in earlier accounting.
Of the Rs 9,450 crore, Rs 2,774 crore pertains to FY18-19 dues of the merged Vodafone Concept entity. In the meantime, Rs 5,675 crore is tied to pre-merger Vodafone Group. Vodafone Concept claims that components of the calculation are duplicated. They’ve requested a recent reconciliation for durations earlier than 2017.
Centre’s stance:
The federal government, which owns 49% of Vodafone Concept after changing Rs 53,000 crore of dues into fairness beneath the 2021 assist bundle, has acknowledged that no additional reduction can be offered. Officers have clarified that the corporate won’t be was a PSU. Its administration should steer it ahead.
At 1:11 PM, the shares of Vodafone Concept have been buying and selling 3.97% decrease at Rs 8.47 on NSE.
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