Vodafone Idea Shares Plunge 12% After Supreme Court Rejects AGR Dues Waiver

Vodafone Idea’s shares experienced a significant decline, dropping by 12.2% to an intraday low of ₹6.47 on the Bombay Stock Exchange. This sharp fall followed the Supreme Court of India’s dismissal of the telecom operator’s plea seeking a waiver of over $5 billion in interest and penalties related to its adjusted gross revenue (AGR) dues.

Supreme Court’s Verdict

The Supreme Court rejected petitions from Vodafone Idea, Bharti Airtel, and Tata Teleservices, which sought waivers on interest, penalties, and interest on penalties associated with their AGR dues. The bench, led by Justice J.B. Pardiwala, termed the petitions “misconceived,” reinforcing the government’s stance on recovering the full spectrum of AGR-related payments.

Financial Implications

Vodafone Idea had previously approached the Department of Telecommunications (DoT) for relief, warning that the company’s survival was at stake. The DoT rejected the plea, prompting the telecom operator to move the Supreme Court, citing public interest and the critical nature of the telecom sector.

Market Reaction

The Supreme Court’s decision has intensified concerns over Vodafone Idea’s financial stability, leading to increased volatility in its stock performance. Investors are closely monitoring the company’s next steps as it navigates these challenges.