Vodafone Idea shares rose by 1% on Tuesday’s trade session amid reports of the centre considering a one-time settlement of dues and interest worth billions of dollars from Vodafone India. This comes as the Indian government is looking to strengthen its trade ties with the United Kingdom. The Bloomberg report stated that the move could resolve the dispute between the Government and Vodafone India. According to Bloomberg, India may consider waiving interest, penalties, and concessions on dues.
According to Bloomberg, Indian officials are drafting a framework for the settlement, which also ensures that it does not bring legal challenges from other telecom operators that also owe substantial dues to the government. The Supreme Court on Monday said it will hear Vodafone Idea's (Vi) plea seeking waiver of interest, penalty, and interest on penalty on its adjusted gross revenue (AGR) dues demanded by the Department of Telecommunications on October 13. Vi, in its application, has sought to amend its previous petition, which sought the quashing of the Department of Telecommunications' additional AGR demand of Rs 9,450 crore for FY19. The amended application now seeks a waiver of interest on the principal amount of AGR dues, penalty, and penalty interest.
The telecom company said it had objected to the imposition of a penalty because the non-payment of AGR dues was genuine. Earlier, on September 26, the apex court had transferred the hearing of the Vodafone Idea AGR case to October 6 due to the government's request for more time. During the previous proceedings, Solicitor General Tushar Mehta, representing the DoT, had requested additional time to respond to Vodafone Idea's petition, and Vodafone Idea did not oppose the request. On September 19, the Centre had informed the Supreme Court that it did not oppose Vodafone Idea's petition, but insisted that a resolution was necessary because the government itself held a significant stake in the company. The Supreme Court had also stressed the need for a final decision in the matter. After converting Vodafone Idea's interest liabilities into equity, the government became the largest shareholder with a 49 per cent stake. However, it is not classified as a promoter.