By Aparna Deb,News18

Copyright news18

Vodafone Idea’s stock plunged as much as 9% on Thursday, hitting an intraday low of Rs 7.90 on the BSE, after the Supreme Court deferred the hearing on the company’s adjusted gross revenue (AGR)-related plea to October 6. The adjournment came after Solicitor General Tushar Mehta sought a postponement during the proceedings.
The telecom major has challenged the Department of Telecommunications’ (DoT) fresh demand of Rs 5,606 crore for the financial year 2016–17 under the AGR framework.
According to the company, of the total dues, Rs 2,774 crore pertains to the post-merger Vodafone Idea entity, while Rs 5,675 crore relates to the pre-merger Vodafone Group liabilities. Vodafone Idea has asked for a reconciliation of the dues, citing duplication of figures and inconsistencies arising from earlier financial account finalisations.
The DoT, however, has argued that the demand is not a reassessment but the result of adjustments made during the closure of pending accounts.
The outcome of the case is crucial for Vodafone Idea, which is in active talks with lenders to raise additional funding. During the company’s June-quarter earnings call, CEO Akshaya Moondra stressed that clarity on the AGR issue was a key factor delaying funding decisions.
Moondra also highlighted that Vodafone Idea has been engaging with the government and that an early resolution of the AGR matter would help unlock funding, enabling the company to move ahead with its capital expenditure plans and long-term business strategy.
The telecom operator has previously benefited from government relief measures such as spectrum payment deferments and conversion of liabilities into equity. It has urged both the government and the court to settle the AGR dispute before March to avoid further delays in securing funds.