Shares of Vodafone Idea Ltd (VI) fell 4% on 6th October after touching a day’s high of Rs 8.95. This happened as the Supreme Court deferred its verdict on the company’s plea regarding additional adjusted gross revenue (AGR) dues.

The hearing has now been rescheduled to 13th October, following two postponements last month.

According to Bloomberg, the Centre is considering a resolution for Vodafone Idea’s dues to strengthen UK ties. This could possibly occur through a one-time settlement. The settlement may include a waiver of interest and penalties, followed by concessions on the principal amount. Officials are reportedly working on a framework.

Timeline of hearings:

• 19th September: The Centre told the court it did not oppose Vodafone Idea’s plea but sought a solution as it is also an equity holder. The court deferred the hearing to 26th September.

• 26th September: The Solicitor General, representing the Centre, sought more time. Vodafone Idea did not object, and the court adjourned until 6th October.

• 6th October: The verdict was expected, but the matter was adjourned again.

The plea:

Vodafone Idea has challenged DoT’s demand of Rs 9,450 crore in additional AGR dues. They argue the claim goes beyond the Supreme Court’s earlier ruling on AGR liabilities. The DoT defended the demand, stating that it was not a reassessment but rather a gap in earlier accounting.

Of the Rs 9,450 crore, Rs 2,774 crore relates to FY18-19 dues of the merged Vodafone Idea entity. Meanwhile, Rs 5,675 crore is tied to pre-merger Vodafone Group. Vodafone Idea claims that parts of the calculation are duplicated. They have requested a fresh reconciliation for periods before 2017.

Centre’s stance:

The government, which owns 49% of Vodafone Idea after converting Rs 53,000 crore of dues into equity under the 2021 support package, has stated that no further relief will be provided. Officials have clarified that the company will not be turned into a PSU. Its management must steer it forward.

At 1:11 PM, the shares of Vodafone Idea were trading 3.97% lower at Rs 8.47 on NSE.

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