Govt to take legal view on SC's Vodafone Idea order
	
		
				New Delhi, Oct. 31 -- The Centre will take a legal view on the Supreme Court's order on Vodafone Idea Ltd's additional gross revenue (AGR) dues before giving any relief to the beleaguered telco, a senior government official said.
The apex court's written order on Wednesday, while clarifying that the dues apply solely to Vodafone Idea, observed that the petition filed by the company restricts its claim only to the additional gross revenue demand raised by the department of telecommunications for the period up to 2016-17.
This assumes significance given that Vodafone Idea may not receive enough financial benefit if the relief is restricted to the additional gross revenue demand, which is around Rs.5,600 crore.
Brokerage firm Emkay Global said in a note dated 27 October that it sees a low chance of the government reversing the current outstanding Rs.37,100 crore additional gross revenue dues of Bharti Airtel Ltd.
"We will take legal advice on the court order and then decide on the possible steps (on giving relief to Vodafone Idea). A legal review is done for all the cases," a government official said, adding that the order is being reviewed.
Analysts at Emkay Global said the Centre will now have sufficient room to devise a plan for Vodafone Idea's long-term sustainability. "We note that leverage for Vodafone Idea remains higher even without additional gross revenue dues, and the government will need to consider plans toward reducing the spectrum debt as well," Emkay Global said in a 27 October note.
Shares of Vodafone Idea were down 7% at Rs.8.71 on the National Stock Exchange on Thursday.
The Supreme Court, on 27 October, allowed the Centre to address Vodafone Idea Ltd's grievances and reassess its additional gross revenue dues.
The court's Wednesday order noted that the relief is being allowed, given the peculiar circumstances of the operator in which the Union government now owns 49% of the telco, which serves nearly 200 million consumers.
"We clarify that this is a matter falling within the policy domain of the Union of India and if, in the peculiar facts and circumstances of the case, the Union of India, keeping in view the larger public interest, desires to reconsider the issue, there is no reason to restrain or prevent it from doing so," the bench of Chief Justice B.R. Gavai and justice K. Vinod Chandran noted in the written order."It is further to be noted that the prayer in the petition itself restricts its claim only to the additional AGR demand raised by the respondent for the period up to the FY16-17. We further clarify that this order is passed only with regard to Vodafone Idea, taking into consideration the peculiar facts and circumstances of the case," it added, dealing a blow to rival operators such as Bharti Airtel.s...
		
			
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