Vodafone Idea pays DoT additional Rs 1,000 crore as AGR dues: Report

Vodafone Idea (Image: Reuters)

Vodafone Idea on July 17 paid an additional Rs 1,000 crore in adjusted gross revenue (AGR) dues to the Department of Telecommunications (DoT), the company said. This comes ahead of the next scheduled hearing in the case with the Supreme Court.

The company had earlier paid Rs 6,854 crore in three tranches and this fourth one takes the total AGR dues paid to Rs 7,854 crore, Mint reported. DoT had in its filing with the SC claimed the telecom company owed Rs 58,254 crore in AGR fees.

Representing the telecommunications company, senior advocate Mukul Rohatgi told the court the company is “barely afloat” and appealed for staggered payment method over 20-year period. He added that the telco would have to shut operations if dues are to be paid up front. “This will impact 11,000 employees,” he noted.

In October 2019, the SC had upheld the DoT’s definition of AGR and directed all telcos to clear AGR dues along with interest and penalties immediately. This was appealed and company and DoT are now seeking a 20-year staggered payment for the same.

In the last ruling on June 20 however, the SC bench was unconvinced that the parties had justified the timeline requirement and said there was “no guarantee” of what could happen over 20 years.