Bharti Airtel, Vodafone Idea, Tata Teleservices stocks dip after SC reserves order in AGR case

The apex court has said that it has not once, but twice and thrice has informed that "AGR demand can’t be recomputed."

Jul 20, 2021 03:07 IST India Infoline News Service

Major telecom stocks were on a bearish note during Tuesday's trading session after the Supreme Court reserved its order in the adjusted gross revenues (AGR) case. The apex court maintained its stand that AGR dues cannot be recomputed, whereas the telecom service provider namely Vodafone Idea, Bharti Airtel and Tata Teleservices had moved to the SC seeking for rectification in errors and commissions by the Telecom Department vis-a-vis dues demands.

In the verdict, Solicitor General Tushar Mehta stated that he has not received any instructions from the Department of Telecommunications on allowing corrections of errors. He said that it would be a little hazardous for him to make a statement without taking instructions from the telecom department. Mehta will get concrete instructions within a day or two.

Vodafone Idea had stated that the figures are "not cast in stone" and that the apex court has power to "correct the arithmetic errors". Currently, the telco has the highest AGR liability among other peers aggregating to more than Rs58,000cr.

However, the apex court has said that it has not once, but twice and thrice has informed that "AGR demand can’t be recomputed."

Last year, in September, SC allowed telcos payments in 10 annual instalments commencing from April 01, 2021, to March 31, 2031.

It is being known that the apex court will hear the case in two weeks time after the DoT's reply on the matter.

On Sensex, Bharti Airtel closed at Rs524.95 per piece down by 2.5%. Vodafone Idea plunged by 1.9% at Rs9 per piece and Tata Teleservices settled at Rs41.65  down by 4.8% after hitting the lower circuit. 

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