Vodafone Idea Sells Firefly Stake for ₹4.5 Crore Amid Tax Dispute

6 Jan 2025 , 10:24 PM

Vodafone Idea Ltd. has sold its entire 50% stake in Firefly Networks Ltd, a joint venture it had with Bharti Airtel Ltd. iBUS Network and Infrastructure Private Ltd is the buyer, which values the transaction at ₹4.5 crore. As part of it, Vodafone Idea and iBUS Network signed a Share Purchase Agreement for transferring shareholding in Firefly Networks.

This deal, being completed is conditioned to occur after satisfying few closing conditions; this will most probably happen in about 30 working days. In fact, following the completion of sale, Firefly Networks shall cease to become a joint venture with Vodafone Idea. The buying company, iBUS Network and Infrastructure, happens to be wholly unconnected to the promoter group or any company of Vodafone Idea.

Vodafone Idea received an order from the Joint Commissioner, CGST & Central Excise, Patna-1, under the Central Goods and Services Tax Act, 2017. The penalty of ₹2.94 crore, along with the demand for additional tax and applicable interest, has been imposed on the company by the order. The order states that there have been excess claims of input tax credit and short payment of taxes.

Vodafone Idea has said it does not accept the findings of the order and will take suitable legal steps to challenge it. The financial implication of the order is the aggregate tax demand, interest, and penalty as the authorities have stated. These are some of the developments that showcase Vodafone Idea’s restructuring attempts while dealing with regulatory and financial issues.