Now Telcos has decided not to sit silent on the Adjusted Gross Revenue (AGR) judgment, on Friday, they have filed review petition application in the supreme court seeking review on certain judgments: reported by CNBC-TV18. According to review petition application, Vodafone-Idea and Airtel have challenged to review the inclusion of national income as a part of Adjusted Gross Revenue (AGR) and that it sought to challenge the imposition of interest on outstanding dues. They also want to contest the levy of penalties as upheld by the apex court and agitate computation and imposition of interest on outstanding dues.
Last month, the 24th Oct 2019 supreme court’s judgment on AGR went in favor of Department of Telecommunications (DoT), now as per the case, Telcos have to pay INR 92,000 crores as spectrum and license charges within 3 months, Vodafone-Idea have to pay INR 28,308 crores and Airtel have to pay INR 21,682 crores. Already facing the financial crisis, and the new liabilities shocked both the companies.
Vodafone Plc CEO Nick Read talk of liquidation of Indian Vodafone venture, In Press Conference held in London, he said, “Financially there’s been a heavy burden through unsupportive regulation, excessive taxes and on top of that, we got the negative supreme court decision, If you’re not a going concern, you’re moving into a liquidation scenario – can’t get any clearer than that,”
Ravi Shankar Prasad spoke to Vodafone-Idea chairman Kumar Mangalam Birla on Vodafone-Idea liquidation remark. However, after the Indian Government’s objection, Vodafone Plc CEO, Nick Read apologies on his liquidation remark.
On November 20th Government comes up with 2-year moratorium, In a press release Cabinet announced 2-year moratorium for Telcos on spectrum charges, Moratorium will start from April 2020. Spectrum payment 2-year moratorium will give INR 40,000 crores relief to the telcos. Famous telecom players Vodafone-Idea and Airtel both are going through struggling time, now have 2 years time to pay spectrum charges.
Vodafone-Idea reported a biggest-ever quarterly loss of INR 50,921 crores for the Sep quarter. Airtel reported a loss of INR 23044 crores for the July- September quarter.