Vodafone Idea Urges Immediate Supreme Court Listing of Its Curative Plea

Vodafone Idea Ltd. has urgently petitioned the Supreme Court for the immediate listing of its curative plea concerning the Adjusted Gross Revenue (AGR) dues case. This plea seeks a reconsideration of the 2019 judgment that mandated telecom operators to include non-core revenue in their AGR calculations. The Chief Justice of India’s decision on listing the plea is crucial for Vodafone Idea, pivotal to resolving its survival in the telecom sector.

Current Situation

Senior advocate Harish Salve, representing Vodafone Idea, informed the court that the plea was filed in September 2023 but has not yet been listed. The company’s backers are seeking clarity on the exact liabilities concerning AGR dues, crucial for their decision-making on finances.

Background 

The NTP 1999 allowed telecoms to pay fees based on income percentage. Disputes over Gross Revenue at TDSAT and the Supreme Court ensued, with telcos arguing that AGR should exclude non-telecom earnings. DoT mandated 8% of total revenue as fees. In 2019, the  Supreme Court imposed penalties that resulted in a demand of Rs.1.19 lakh crore from telecom operators. Vodafone Idea’s share of this amount is Rs.58,254 crore. Although the Supreme Court allowed a 10-year period for payment but dismissed review pleas in 2021.

Supreme Court’s 2019 Judgment

The 2019 Supreme Court judgment settled the long-standing dispute by including non-core revenues in AGR calculations, increasing liabilities for telecom giants like Vodafone Idea and Bharti Airtel. Vodafone Idea’s current AGR dues stand at approximately Rs.58,000 crore, comprising a principal amount of around Rs.14,000 crore, with interest and penalties escalating the total to Rs.70,320 crore as of FY24.

Financial Strain & Appeal

Vodafone Idea contends that errors in the Department of Telecommunications (DoT) calculations have unfairly inflated its dues. The company argues that correcting these errors could reduce the principal amount owed to approximately Rs.8,000 crore, offering a more equitable resolution.

Curative Petition

A curative petition is a final legal recourse to rectify perceived miscarriages of justice after regular appeals are exhausted. Vodafone Idea’s plea challenges the 2019 judgment’s financial impact and procedural fairness, aiming to mitigate the burden that threatens the company’s financial stability.

Conclusion: In conclusion, Vodafone Idea urgently seeks a Supreme Court listing for its curative plea on AGR dues, contesting the inclusion of non-core revenues. With dues at Rs.58,254 crore and a plea filed in September 2023, clarity on liabilities is critical for the company amid financial strain.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.