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Vodafone Idea’s stock soared over 4% on Monday after the Supreme Court allowed the Centre to reconsider the company’s plea on Adjusted Gross Revenue (AGR) dues, offering a potential lifeline to the cash-strapped telecom operator.
What it means: Vodafone Idea, one of India’s major telecom companies, got some good news after the Supreme Court said the government can reconsider how much money the company owes in old telecom fees, known as AGR dues.
What SC said: the apex court observed that given the Centre’s 49% stake in Vodafone Idea and the fact that the company serves nearly 20 crore customers, the issue deserves a fresh look in the larger public interest.
“We see no impediment in the Centre reconsidering the issue and taking an appropriate call,” the court said, effectively giving the government room to propose a way forward.
Why this is positive for Vi: SC’s remarks come as a major relief for the company, which has been weighed down by heavy AGR liabilities and struggling to stay competitive against Reliance Jio and Bharti Airtel.
The verdict doesn’t erase its dues, but it does open the door for policy-level relief, giving the company some breathing space.
