Vodafone Group makes Rs 1,530 cr payment to Vodafone Idea under 'contingent liability mechanism'
Vodafone Group on Wednesday said it has accelerated a payment of $200 million (about Rs 1,530 crore) to Vodafone Idea, due in September 2020, under the terms of the 'contingent liability mechanism'
New Delhi: Vodafone Group on Wednesday said it has accelerated a payment of $200 million (about Rs 1,530 crore) to Vodafone Idea, due in September 2020, under the terms of the "contingent liability mechanism".
Accelerated a payment of $200 m to Vodafone Idea, which was due in September 2020, Vodafone Group Says.
It was done under the terms of the contingent liability mechanism & to provide Vodafone Idea with liquidity to manage its operations, co says pic.twitter.com/5OUcAVklQF
— CNBC-TV18 (@CNBCTV18Live) April 22, 2020
"Vodafone Group has accelerated this payment to provide Vodafone Idea with liquidity to manage its operations, and to support the approximately 300 million Indian citizens who are Vodafone Idea customers as well as the thousands of Vodafone Idea employees during this phase of emergency health measures, taken as a result of the COVID-19 pandemic," Vodafone said in a statement.
Consequent to the decision by the Supreme Court on the definition of adjusted gross revenue in October 2019, India's telecom operators became liable for licence fees, penalties and interest dating back over 14 years, it said.
"Vodafone Idea has made payments to the Government of India in relation to its AGR liabilities. Under the terms of the CLM (contingent liability mechanism), Vodafone Group is obliged to make payments to Vodafone Idea where amounts paid pursuant to the contingent liabilities of Vodafone India exceed those of Idea Cellular. The CLM took effect at completion of the merger of Vodafone India and Idea Cellular in August 2018," it added.
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