Report Wire - Vodafone Idea defers Rs 8,837 crore AGR dues fee, will get choice to pay curiosity through fairness

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Vodafone Idea defers Rs 8,837 crore AGR dues fee, will get choice to pay curiosity through fairness

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Vodafone Idea defers Rs 8,837 crore AGR dues payment, gets option to pay interest via equity

Debt-ridden telecom operator Vodafone Idea has determined to defer fee of further adjusted gross revenues of Rs 8,837 crore dues by a interval of 4 years.

The firm in a late evening submitting on June 22, mentioned that the DoT on June 15, has raised adjusted gross income (AGR) demand for added two monetary years past 2016-17, which weren’t coated underneath the Supreme court docket order on the statutory dues.

Vodafone Idea (VIL) within the submitting mentioned that its board of administrators “has approved the exercise of the option of deferment of the AGR related dues by a period of four years with immediate effect, in accordance with the said DoT Letter. The amount of the AGR related dues as stated in the said DoT Letter is Rs 8,837 crores which is subject to revision on account of disposal of various representations”.

The authorities calculates its share of income from telecom operators primarily based on their AGR, which is taken into account to have been earned by them from the sale of companies.

VIL submitting mentioned that the DoT has supplied the corporate a moratorium of 4 years for all AGR associated dues as much as Financial Year 2018-19, which weren’t included in Supreme Court order dated September 1, 2022 which might be exercised inside a interval of 15 days by June 30.

“The said DoT Letter also provides the Company an option for equity conversion of interest dues upfront for these AGR related dues for which a period of 90 days has been provided from the date of the said DoT Letter,” VIL mentioned.

The firm mentioned the recent demand of Rs 8,837 crore is topic to revision on account of disposal of assorted representations, CAG, particular audit and another consequence of litigation and “the final amount to be paid in six equal annual instalments post moratorium period starting from March 31, 2026”.

The authorities has already authorized Vodafone Idea’s proposal to transform about Rs 16,000 crore curiosity fee dues of earlier AGR moratorium into round 33 per cent stake within the firm.

According to official knowledge, telecom operators owe over Rs 1.65 lakh crore to the federal government in adjusted gross income as much as monetary yr 2018-19.

The recent calculation reveals AGR legal responsibility on Bharti Airtel was Rs 31,280 crore, Vodafone Idea Rs 59,236.63 crore, Reliance Jio Rs 631 crore, BSNL Rs 16,224 crore, MTNL Rs 5,009.1 crore as much as monetary yr 2018-19.

The firm in a separate submitting mentioned that its board has authorized elevating of Rs 436.21 crore from Vodafone Group firm Euro Pacific Securities by means of situation of preferential share at a unit worth of Rs 10.2 apiece or warrants on the identical worth.