Bharti Airtel Falls 5%, Vodafone Idea Slides 23% as DoT Asks to clear AGR dues
Representative image. (Photo: Reuters)
Shares of telecom companies Bharti Airtel Ltd and Vodafone Idea Ltd slipped in trade on Thursday, i.e. 14 November, after the Department of Telecom (DoT) reportedly asked them to pay their adjusted gross revenue (AGR) dues within three months as ordered by the Supreme Court.
Shares of Bharti Airtel dropped nearly 5% in intra-day trade, while those of Vodafone Idea nosedived 23% after the DoT’s notice. Bharti Infratel, too, was trading down around 9%.
The Supreme Court in its last month’s ruling had upheld the definition of AGR calculation as stipulated by the DoT. It had then said: “We give three months’ time to deposit the amount which is due and compliance be reported.”
“...you are therefore directed to make the payment in accordance with the order of the Hon'ble Supreme Court dated October 24, 2019, and submit the requisite documents to ensure the compliance within the stipulated timeframe,” said a notice received by the source.
The DoT has given telecom operators the option to clear all the dues on a self-assessment basis, according to an industry source quoted by media reports. An internal estimate prepared by the DoT, however, pegs total dues on the telecom service providers at around Rs 1.33 trillion.
To recall, the apex court had ruled that AGR will include all revenues except for termination fee and roaming charges. Telcos, meanwhile, were arguing that non-telecom, non-core revenues should not be a part of the AGR.