Mumbai, February 14: Vodafone-Idea stock erased all its morning gains and are now down more than 13 percent after the Supreme Court dismissed the review petitions filed by the telecom companies. According to reports, the Apex Court slammed the DoT for staying coercive action against the telecom companies for recovery proceedings. Ahead of the SC hearing, the stock was up 15 percent, however, it soon reversed its gains.
The stock was trading at Rs 4, down 10 percent on the BSE. According to an ET Now report, SC asked the telcos to deposit their dues by March 17. In a hearing on the plea by telcos to provide more time to pay their AGR dues, the court stated that it would take action against all those who haven’t complied with its orders. Vodafone-Idea, Airtel Delay AGR Payment, Write to DoT to 'Wait for Supreme Court's Decision'.
As per reports, fifteen telcos need to pay over Rs 1.47 lakh crore to the government, comprising of license fees, spectrum usage charge, interest and penalties. Shares of other telecom companies also tanked after SC refused to defer hearing despite a request by the Solicitor General of India.
Towards the end of last month, Vodafone Idea and Airtel wrote a letter to the department of telecommunications urging the Union government to wait for orders from the Supreme Court on the adjusted gross revenues (AGR) modification pleas. Both the telecom major informed the DoT that they won't make any payment to the Union government on the last day of the deadline, which was January 23, 2020.