Vodafone Idea says may shut if AGR dues not corrected

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Stating that it will “go under” if errors in AGR (adjusted gross revenue) calculations are not corrected, cash-strapped telco Vodafone Idea (Vi) has said that “it is a travesty of justice” that the company is restrained from questioning arithmetical errors which will cost it about Rs 25,000 crore.

The telco has filed a petition to review the apex court’s July 23 order disallowing “corrections” in AGR calculations. Vi said it has no intention of not paying the mandated AGR dues, but if the arithmetic mistakes are not allowed to be rectified, it might need to close down its operations.

Vi shutting shop would adversely impact 280 million subscribers, close to 20,000 employees (direct and indirect) along with banks, retailers and government.

Review petition

“It is inconceivable that even errors/inadvertent additions by the respondent-DoT to the AGR dues have not been allowed to be corrected. It is a travesty of justice that the petitioner is restrained from questioning arithmetical errors/omissions, which are going to cost the petitioner approximately Rs 25,000 crore (Rs 5,932 of principal plus interest, penalty and interest on penalty),” the petition stated, as per a report in The Economic Times.

Vi’s review petition was filed in the SC just weeks after the apex court rejected its earlier appeal seeking corrections in the alleged arithmetical errors by the Department of Telecom, thus corroborating the AGR dues at Rs 58,254 crore. The company had already paid Rs 7,854 crore.

The telco said that there has been a case of double-counting by the DoT and some of the payments made were excluded. As per Vi’s own calculations, its AGR dues are pegged at Rs 21,533 crore.

The telco said that is already struggling to survive in India and retain its spot as the third private wireless telecom service provider. For a matter of fact, these are the last set of appeals that cash-strapped company has whose fortunes have been dragged to the bottom in recent times.