Supreme Court allows govt to consider full relief on all Vi dues, shares surge

Vodafone Idea had filed a review petition in the Supreme Court to seek relief on both additional AGR dues and the reassessment of all dues up to FY17.

The Supreme Court has modified its earlier order to allow the government to consider relief on all Voadone Idea dues, a move that sent the company's share price soaring 10%.

Vodafone Idea has a total debt in excess of ₹2 lakh crore. (Reuters)

Vodafone Idea had filed a review petition in Supreme Court to seek relief on both additional AGR dues and the reassessment of all dues up to FY17.

Last week, the Supreme Court had said the government was free to reconsider Vodafone Idea AGR dues, causing uncertainty over whether the observation applied only to the firm's additional AGR dues or the entire amount owed. Vi had sought relief both on the additional AGR dues worth about ₹9,500 crore and its total AGR dues of nearly ₹80,000 crore.

Vi's moratorium on spectrum and adjusted gross revenue payments ended in September. As on date, Vodafone Idea's debt is estimated at more than ₹2 lakh crore.

India's telecom operators, including Vodafone Idea, have long contested the government's method of calculating AGR, which determines the licence fees and other dues.

Separately, Vodafone Idea informed the stock exchanges that the company’s board isn’t considering a fundraising proposal, amid media reports that US-based private equity firm Tillman Global Holdings is in negotiations to invest $4-6 billion (about ₹35,000 to ₹52,800 crore) in the company to buy out promoters Aditya Birla Group and the UK’s Vodafone Group Plc.

On Monday, Vodafone Idea shares rose 9.28% to ₹9.54 apiece on the BSE even as the benchmark Sensex ended the day 0.05% higher at 83,978.49 points.