India’s Supreme Court has dismissed the latest appeals from Bharti Airtel and Vodafone Idea, which sought to have the adjusted gross revenue (AGR) dues recalculated. These companies owe a combined total of approximately $11 billion to the Indian government.
The AGR fees were determined by the government following a 2019 court ruling. Since this verdict, the telecom operators have contended that the debts were miscalculated. They have argued that their financial struggles and the competitive market dynamics warrant a reassessment or reduction of these dues. However, the Supreme Court has maintained its position, only permitting a payment extension over a 10-year period.
This recent plea was a ‘curative petition’, wherein the telcos insisted that the Department of Telecommunications (DoT) had made a “grave error” in its calculations. They referred to the calculated amounts as “arbitrary.” The Supreme Court, nonetheless, rejected this plea, asserting that no substantial case was demonstrated within the established parameters.
As a direct consequence of this ruling, Vodafone Idea saw its share price plummet by 15%. The company is accountable for roughly three-quarters of the total AGR dues.
