CIOInsider India Magazine
Vodafone Idea Files Review Petition Over AGR Verdict in Supreme Court
Telecom major Vodafone Idea’s lawsuit against AGR (Adjusted Gross Revenue) verdict in Supreme Court, requesting a revaluation of arithmetic errors in the computation of these dues.
VI had requested a reversal of the Supreme Court's July 23 decision. However, the Supreme Court dismissed the pleas for rectification of alleged errors in the calculation of AGR dues and are now payabl.
The telecom major’s lawyers argued with the Supreme Court that the firm is losing a lot of money and informed SC that if the rectification is not allowed, the telecom major will have to ‘go under’.
The same SC bench, led by Justice LN Rao, is expected to hear the plea.
Meanwhile, the company is suffering a cash crunch of over unpaid government debts totaling Rs 50,000 crore after billionaire Kumar Mangalam Birla stepped down as chairman of Vodafone Idea Ltd.
Vodafone Idea (VIL) had an AGR liability of Rs 58,254 crore, of which it had paid Rs 7,854.3 crore and had an outstanding balance of Rs 50,399.6 crore.
Despite numerous ongoing negotiations with investors, the telecom major is set on completing an Rs.25,000 crore fundraise using a combination of loan and equity.
When investors review their positions at these price points, Vi intends to raise between $ 800 and $1 billion through broadband, optic fibre, and data centre sales.
On the other side, the potential fibre asset sale might take the form of a sale and leaseback deal, in which the telecom sells the fibre assets but rents the capacity from the buyer for a long time.
CFO Akshaya Moondra had previously stated that the telecom major aimed to raise an additional Rs.3,000 crore in cash this fiscal year from tax refunds and the sale of data centre land parcels.
Soon after, it announced plans to alleviate its liquidity problem by generating up to $ 1 billion (about Rs. 7,400 crores) from its broadband subsidiary sales, optic fibre unit, and data centres business.
Vodafone Idea (VIL) had an AGR liability of Rs 58,254 crore, of which it had paid Rs 7,854.3 crore and had an outstanding balance of Rs 50,399.6 crore.
As of March 31, 2021, VIL's gross debt, excluding lease liabilities, was Rs 1,80,310 crore.
Apart from the AGR burden, the figure comprised Rs 96,270 crore in deferred spectrum payment obligations and Rs 23,080 crore in debt to banks and financial organizations.
