Monday, 17 February 2020

AGR dues: Vodafone Idea on the brink as DoT may revoke bank guarantees

Solicitor General’s view sought after SC refuses relief; telcos pay a fraction of the total AGR dues
Vodafone
In a day of twists and turns, the government received Rs 14,697 crore from three companies out of the telecom sector’s total dues linked to adjusted gross revenue (AGR) estimated at Rs 1.47 trillion, even as the Supreme Court dismissed Vodafone Idea’s plea seeking relief from revocation of its bank guarantee.
Not leaving anything to chance, the Department of Telecommunications (DoT) has sought legal opinion including that of Solicitor General Tushar Mehta on whether to revoke bank guarantees of companies in case they fail to pay their full AGR dues before the next date of hearing on March 17. Any move to revoke or encash the bank guarantee would put the operation of highly-stressed Vodafone Idea at risk.
The firm has maintained that without a relief on the AGR payout, it may not be possible to continue as a going concern. Also, according to a CNBC-TV18 report, Voda Idea has written to the DoT and the Income Tax Department, seeking adjustment of its AGR dues against a Rs 7,000-crore pending tax refund related to an earlier SC judgement that Vodafone-Hutchison deal was not taxable in India…

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