Vodafone Concept shares slide 2% after Supreme Court docket defers AGR plea listening to

Vodafone Concept Ltd (VIL) shares fell 2% on Monday after the Supreme Court docket postponed listening to the telecom big’s plea in opposition to the federal government’s further adjusted gross income (AGR) demand to October 27, extending uncertainty over the corporate’s longstanding monetary legal responsibility.

VIL had filed a contemporary petition difficult the Division of Telecommunications’ (DoT) demand of Rs 5,606 crore for the monetary yr 2016–17, searching for a path for the DoT to “comprehensively re-assess and reconcile” all AGR dues for the interval as much as FY 2016–17, in keeping with the Deduction Verification Pointers dated February 3, 2020.

The Supreme Court docket’s deferral follows earlier setbacks for Vodafone Concept and different telecom majors. Earlier this yr, the apex court docket had rejected petitions from VIL and Bharti Airtel searching for rectification of alleged errors within the 2021 order calculating AGR dues.

Authorities indicators attainable settlement

Regardless of the authorized roadblocks, the Centre has indicated efforts are underway to discover a decision. Final month, the federal government instructed the apex court docket that “some resolution could also be required” for Vodafone Concept’s petition. Bloomberg reported on October 6, citing sources, that India is contemplating a one-time settlement of its longstanding AGR dues from Vodafone Group Plc’s native enterprise, probably by a waiver of curiosity and penalties, adopted by concessions on the principal.Officers are reportedly drafting the framework whereas evaluating measures to stop authorized challenges from different telecom operators with AGR obligations, in accordance with the Bloomberg report. The overall dispute quantities to almost Rs 2 lakh crore.

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The delayed listening to provides to the uncertainty surrounding Vodafone Concept’s stability sheet and investor sentiment. Because the Supreme Court docket units the following date for October 27, traders might be watching carefully for any indicators of a concrete decision that might reshape Vodafone Concept’s monetary outlook.

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