Thu Sep 19 13:09:40 UTC 2024: ## Vodafone Idea Share Price Plunges 19% After Supreme Court Rejects AGR Recalculation Plea
**New Delhi:** Vodafone Idea (Vi) shares plummeted by 19% on Friday after the Supreme Court dismissed the company’s plea for a re-evaluation of adjusted gross revenue (AGR) dues. The company’s shares closed at ₹10.44, reflecting investor concerns over the significant financial burden the company faces.
The Supreme Court rejected the curative petition filed by Vi and other telecom companies, effectively upholding its earlier ruling on the AGR calculation. This decision leaves Vi with an outstanding AGR liability of around ₹70,000 crore, a substantial financial burden for the already struggling company.
The court’s decision is likely to have a ripple effect on the entire telecom sector. While Bharti Airtel may experience a less severe impact, other companies like Indus Towers, which rely heavily on telecom operators for revenue, are expected to face challenges.
The telecom industry had argued for a re-calculation of the AGR, claiming that the existing calculation was faulty and resulted in exorbitant dues. They also requested an open court hearing on the matter, which was also rejected by the court.
With this ruling, telecom companies have been left with no option but to pay the outstanding AGR dues. The moratorium period, which allows companies to defer payments, is set to expire in 2025. The total AGR dues owed by all telecom companies are estimated to be around ₹1 lakh crore.
The situation highlights the ongoing financial struggles faced by the Indian telecom industry and the significant impact of the AGR liability. This decision is likely to further intensify competition in the sector and potentially impact consumer tariffs in the coming months.
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