Vodafone Idea pays Rs 3,354 cr to govt in AGR dues, claims principal amount fully paid now

Vodafone Idea had pegged its total dues to the government following a Supreme Court order at Rs 21,533 crore—less than half of what the Telecom Department has estimated,

FP Staff March 16, 2020 14:15:22 IST
Vodafone Idea pays Rs 3,354 cr to govt in AGR dues, claims principal amount fully paid now

Vodafone Idea on Monday said it has made an additional payment of Rs 3,354 crore towards adjusted gross revenue (AGR) to the Department of Telecom (DoT), thereby completing payment of principal amount calculated on self-assessment basis, according to news reports.

With this fresh payment, Vodafone Idea (VIL) has paid Rs 6,854 crore towards AGR dues, PTI said.

Vodafone Idea had pegged its total dues to the government following a Supreme Court order at Rs 21,533 crore—less than half of what the Telecom Department has estimated, even as the Vodafone Group CEO Nick Read last week indicated keenness to make a "new, good beginning" in India. Vodafone Idea had earlier paid Rs 3,500 crore out of the "self-assessed" liability of Rs 21,533 crore.

Vodafone Idea pays Rs 3354 cr to govt in AGR dues claims principal amount fully paid now

Representational image. Reuters.

"The company has today (Monday) paid a further amount of Rs 3,354 crore to the DoT, being the balance part of the principal amount towards AGR liability. Thus, the company has paid the full principal amount of Rs 6,854 crore towards AGR dues," VIL said in a BSE filing.

The DoT has raised total demand of around Rs 53,000 core for AGR liability of VIL which included interest, penalty and interest on delay in payment of the amount.

VIL said it had filed its self-assessment of the AGR liabilities with the DoT pm on 6 March, 2020, in which AGR liability principal amount of Rs 6,854 crore was determined for the period from financial year 2006-07 to FY 2018-19.

The company had earlier paid Rs 2,500 crore on 17 February, 2020, and Rs 1,000 crore on February 20 towards AGR liabilities.

Analysts had called Vodafone Idea the most imperiled from the telecom dues as it was burdened with the largest share of the total dues demanded by the government, Reuters said.

A week before the Supreme Court-mandated deadline for payment of past dues ends, Bharti Airtel chairman Sunil Mittal said that the company has paid Rs 13,000 crore to the government to clear all its dues as per its self-assessment.

Shares of Vodafone Idea were trading 5.4 percent higher in a Mumbai market that was roiled on virus fears.

Meanwhile, the Supreme Court on Monday dismissed a petition filed by Vodafone against the levy of one-time spectrum charges (OTSC). Senior advocate Abhishek Manu Singhvi, appearing for Vodafone, told a bench of Justice Arun Mishra and Justice MR Shah that the charges are related to the adjusted gross revenue (AGR).

--With inputs from agencies

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