AGR verdict devastating, telcos on brink of financial insolvency: Voda Idea

Vodafone-Idea (VIL), in its review petition filed in the Supreme Court against the recent order on adjusted gross revenue, has made it clear that the impact of the judgment is so “devastating” that telecom companies like them are on the “brink of financial insolvency” and the net worth of the company is “drastically depleting.”

Bringing to the notice of the court that the company has not made any “undue profits” or taken advantage of the shift to the revenue share regime, VIL has in its petition said that its promoters, which include Vodafone, the Aditya Birla group, and public shareholders, have invested more than Rs 1.90 trillion, of which Rs 1.65 trillion was bought as foreign direct investment, but it is facing stress now. It points out in its petition that the investment in the company including the shareholders’ contribution, borrowing from banks, and deferred payment liabilities to date, is more than Rs 3.104 trillion.