On July 23, the Supreme Court (SC) dismissed all applications of Vodafone Idea and Bharti Airtel for the recomputation of Adjusted Gross Revenue (AGR) demanded by the Department of Telecommunication (DoT).
Previously, the top court had delivered its verdict in October 2019 on the matter by upholding DoT’s definition of AGR and ordering the firms to pay levies based on the DoT definition along with interest on the principal amount and penalty.
The telecom companies had moved to Supreme Court seeking directions to the DoT for the recalculation of AGR due to the “mathematical errors” in the month of January this year.
In September 2020, the Supreme Court had ordered the two telecom companies to pay their dues. With certain conditions, the apex court had provided Vodafone Idea, Bharti Airtel, and Tata Teleservices ten years for the payment of their AGR-related dues to DoT. However, it demanded they pay 10 percent of their dues by 31st March 2021.
It had concluded that DoT’s demand, as well as its verdict, were final. The apex court had also asked the Managing Directors i.e. MDs or CEOs (Chief Executive Directors) of the concerned firms to furnish either undertaking or a personal guarantee for paying the dues.
After the judgment, Vodafone Idea’s shares slipped nearly 10 percent to ₹8 share post alongside the shares of Bharti Airtel trading over a percent lower at ₹539 apiece on the Bombay Stock Exchange (BSE).