Vodafone Idea Ltd.

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  ias2507

  Idea Cellular

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  3 hrs ago

  further it is in the supplementary cause list...and has been adjourned twice.......high chances are that it will be taken up in the first hour itself... regards View more

  Posted by : ias2507

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    further it is in the supplementary cause list...and has been adjourned twice.......high chances are that it will be taken up in the first hour itself... regards

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  sandymaith

  Idea Cellular

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  17 hrs ago

  the core conflict vodafone ideas position represented by mukul rohatgi vi is a private company although the government is now a major shareholder it is fighting against a specific additional demand for agr dues from the department of telecommunications dot vis argument led by rohatgi is that this new demand falls under a period for which dues were already settled and that the dots calculation contains duplication of entries and computational mistakes essentially they are arguing that the dots action is legally flawed and has no basis the governments position represented by tushar mehta the dot is a government body tushar mehta as the solicitor general is its representative historically the government has taken a hardline stance on agr dues as they represent a massive amount of revenue for the exchequer however the situation is not straightforward anymore the play and the strategic shift the dynamic changed dramatically with a recent development the government became a major shareholder in vodafone idea government as regulator vs government as investor this is the heart of the play the government through the dot has a legal obligation to collect all dues from telecom companies as a regulator but now as a shareholder with a 49 percent stake it also has a vested interest in the survival and profitability of vodafone idea if vi collapses the governments investment is worthless and it loses a major player in a crucial sector creating a duopoly between jio and airtel tushar mehtas shift in stance this is the most telling part instead of aggressively arguing against vodafone idea mehtas recent arguments in the supreme court have been remarkably conciliatory he has stated that circumstances have changed and that the government and the company are trying to find a solution he even pointed out that the government is now a stakeholder and that some solution may have to be found out subject to your lordships approval this is a significant move away from the no recalculation no reassessment stance the government previously held the lawyers as facilitators in this scenario rohatgi and mehta are not simply fighting a legal battle they appear to be using the court as a platform to legitimize a new mutually beneficial outcome they are essentially telling the supreme court that the two parties have a political solution in the works and they need the courts blessing to move forward the court has a pre existing order that prohibits a re assessment of dues by having both lawyers including the solicitor general agree on the need for a solution they are asking the court to make an exception to its own rule based on new circumstances why this strategy saving vodafone idea a resolution of the agr issue is a prerequisite for vodafone idea to raise further funds from banks and other investors without this clarity its survival is in jeopardy the governments new position is a strong signal that it does not want the company to fail maintaining a competitive telecom market the government wants to avoid a duopoly which could lead to higher prices and reduced service quality for consumers by ensuring vis survival it maintains a three player market protecting the governments investment as a 49 percent shareholder the government has a financial interest in seeing the company succeed writing off the agr dues or a portion of them is a far better outcome for the governments balance sheet than seeing the company go bankrupt and losing its entire investment in short the play is a sophisticated use of the legal system to serve a political and economic purpose the lawyers despite their perceived affiliations are executing a strategy where both the government and vodafone idea stand to gain from a resolution even if it means deviating from a previous legal position the fact that the solicitor general is publicly requesting an adjournment to find a solution is a clear signal of this new cooperative approach explicit statement from the government this is the most crucial factor the solicitor general of india tushar mehta has explicitly told the supreme court that the government does not oppose vodafone ideas plea and is actively working to find a solution this is a definitive and public shift in the governments position governments new role as a stakeholder the government has a vested interest in the companys survival as it is now the single largest shareholder with nearly 50 percent equity a legal loss for vodafone idea would be a financial loss for the government the legal and regulatory battle has been replaced by a strategic one where the government is trying to protect its investment and the health of the telecom sector the court is facilitating a solution the supreme court which previously insisted on finality in the agr dispute has now shown a willingness to cooperate by granting the governments request to defer the hearing the court is essentially providing the two parties with the time and space to negotiate a deal the courts role now is to approve a solution that is in the public interest rather than to rule on a contentious legal dispute mutual benefit both parties have a strong incentive to settle vodafone idea needs clarity on its liabilities to raise a crucial capital infusion and the government needs a stable telecom sector with at least three major players a settlement is the only way for both of these goals to be achieved in essence the fight is over the two parties are no longer adversaries they are now working together to present a unified solution to the court which is highly likely to approve it the chances of the court rejecting a mutually agreed upon solution presented by the government and a private company in which the government is a major stakeholder are extremely low now do your math to me there is a little downside but huge upside potential View more | 2

  Posted by : sandymaith

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    the core conflict vodafone ideas position represented by mukul rohatgi vi is a private company although the government is now a major shareholder it is fighting against a specific additional demand for agr dues from the department of telecommunications dot vis argument led by rohatgi is that this new demand falls under a period for which dues were already settled and that the dots calculation contains duplication of entries and computational mistakes essentially they are arguing that the dots action is legally flawed and has no basis the governments position represented by tushar mehta the dot is a government body tushar mehta as the solicitor general is its representative historically the government has taken a hardline stance on agr dues as they represent a massive amount of revenue for the exchequer however the situation is not straightforward anymore the play and the strategic shift the dynamic changed dramatically with a recent development the government became a major shareholder in vodafone idea government as regulator vs government as investor this is the heart of the play the government through the dot has a legal obligation to collect all dues from telecom companies as a regulator but now as a shareholder with a 49 percent stake it also has a vested interest in the survival and profitability of vodafone idea if vi collapses the governments investment is worthless and it loses a major player in a crucial sector creating a duopoly between jio and airtel tushar mehtas shift in stance this is the most telling part instead of aggressively arguing against vodafone idea mehtas recent arguments in the supreme court have been remarkably conciliatory he has stated that circumstances have changed and that the government and the company are trying to find a solution he even pointed out that the government is now a stakeholder and that some solution may have to be found out subject to your lordships approval this is a significant move away from the no recalculation no reassessment stance the government previously held the lawyers as facilitators in this scenario rohatgi and mehta are not simply fighting a legal battle they appear to be using the court as a platform to legitimize a new mutually beneficial outcome they are essentially telling the supreme court that the two parties have a political solution in the works and they need the courts blessing to move forward the court has a pre existing order that prohibits a re assessment of dues by having both lawyers including the solicitor general agree on the need for a solution they are asking the court to make an exception to its own rule based on new circumstances why this strategy saving vodafone idea a resolution of the agr issue is a prerequisite for vodafone idea to raise further funds from banks and other investors without this clarity its survival is in jeopardy the governments new position is a strong signal that it does not want the company to fail maintaining a competitive telecom market the government wants to avoid a duopoly which could lead to higher prices and reduced service quality for consumers by ensuring vis survival it maintains a three player market protecting the governments investment as a 49 percent shareholder the government has a financial interest in seeing the company succeed writing off the agr dues or a portion of them is a far better outcome for the governments balance sheet than seeing the company go bankrupt and losing its entire investment in short the play is a sophisticated use of the legal system to serve a political and economic purpose the lawyers despite their perceived affiliations are executing a strategy where both the government and vodafone idea stand to gain from a resolution even if it means deviating from a previous legal position the fact that the solicitor general is publicly requesting an adjournment to find a solution is a clear signal of this new cooperative approach explicit statement from the government this is the most crucial factor the solicitor general of india tushar mehta has explicitly told the supreme court that the government does not oppose vodafone ideas plea and is actively working to find a solution this is a definitive and public shift in the governments position governments new role as a stakeholder the government has a vested interest in the companys survival as it is now the single largest shareholder with nearly 50 percent equity a legal loss for vodafone idea would be a financial loss for the government the legal and regulatory battle has been replaced by a strategic one where the government is trying to protect its investment and the health of the telecom sector the court is facilitating a solution the supreme court which previously insisted on finality in the agr dispute has now shown a willingness to cooperate by granting the governments request to defer the hearing the court is essentially providing the two parties with the time and space to negotiate a deal the courts role now is to approve a solution that is in the public interest rather than to rule on a contentious legal dispute mutual benefit both parties have a strong incentive to settle vodafone idea needs clarity on its liabilities to raise a crucial capital infusion and the government needs a stable telecom sector with at least three major players a settlement is the only way for both of these goals to be achieved in essence the fight is over the two parties are no longer adversaries they are now working together to present a unified solution to the court which is highly likely to approve it the chances of the court rejecting a mutually agreed upon solution presented by the government and a private company in which the government is a major stakeholder are extremely low now do your math to me there is a little downside but huge upside potential

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  The Fixed Income

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  18 hrs ago

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    diversify your investment portfolio with state-secured confidence ✔️ coupon: 7.65% ✔️ tenor: 7y 4m (maturity: 22/feb/2033) a state government security designed for investors seeking predictable, low-risk growth with assured payouts and sovereign trust. ???? explore on the fixed income: https://www.thefixedincome.com/product/dvjhdfpbpt0=/765-haryana-sdl-2033?utm_source=moneycontrol&utm_medium=forum&utm_campaign=product_list

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