Latest news with #Moondra
Time of India
06-06-2025
- Business
- Time of India
Vodafone Idea vs SC dispute: Akshaya Moondra's AGR relief remark raises eyebrows; triggers debate on top court's ruling
NEW DELHI: Vodafone Idea CEO Akshaya Moondra's recent statement about continuing talks with the government seeking relief for adjusted gross revenue (AGR) dues have triggered legal backlash, with experts saying the comments are misleading. His statement came just days after a two-judge bench of the Supreme Court , comprising Justices JB Pardiwala and R. Mahadevan, on May 19 dismissed Article 32 petitions filed by Vodafone Idea, Bharti Airtel, and the Tata Group. The petitions had sought waivers on adjusted gross revenue (AGR) interest and penalties, which amount to nearly Rs 80,000 crore. During a June 2 earnings call, Moondra said, 'As far as the government relief is concerned, I think we are engaged with the government... What the government will do, I cannot comment on their behalf. But definitely post the judgment, we continue with our engagement with the government to find a solution to the AGR matter.' The court termed the petitions "misconceived" and said that the AGR issue had already been settled through its 2019 judgment and subsequent review and curative petitions. 'It will be a very sad day if the highest Court of this Country starts entertaining Article 32 writ petitions on the same subject matter after the curative petitions are dismissed,' the bench observed. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like 3BHK Transformation Possible for ₹4.5 Lakh? HomeLane Get Quote Undo Vodafone Idea's attempt to re-engage the government after such a clear verdict triggered criticism from the legal fraternity. Advocate Gaurav Gupta said the May 19 order reaffirmed that AGR dues were final. He added that any attempt by the government to now offer relief would be against the law established by the Supreme Court. 'Once an issue is decided by the highest court, the options for both the company and government are limited, as the executive cannot override the law established by the Supreme Court,' said Advocate Ashish Dixit. Senior Advocate Mukul Rohatgi, who represented Vodafone Idea in court, had conceded during the hearing that all legal avenues, including review and curative petitions, had been exhausted. He requested the court to let the government consider the company's representation. But the bench reminded him, 'If the government wants to help you, we are not coming in the way; who is stopping them from having a look at the representation?' However, Rohatgi admitted the government had refused to do so, citing the binding nature of the court's earlier rulings. The Solicitor General also confirmed that the executive was unable to intervene due to the 2019 verdict and its finality. Despite this, Moondra's remarks suggested that Vodafone Idea continued to expect some resolution from the Centre. Legal experts criticised this as potentially misleading to the public and shareholders. Chief Justice BR Gavai recently warned against distortion of judicial remarks, noting that such misinterpretations can negatively affect public understanding of court rulings. Advocate Mohit Paul reminded that the AGR definition issue was settled in October 2019, when the Supreme Court ruled it includes all revenue, telecom or otherwise, and confirmed the telcos must pay Rs 1.56 trillion including penalties and interest. Since then, all legal efforts, including review and curative petitions, were dismissed. When the telcos filed a fresh round of Article 32 writ petitions in May 2025, the Supreme Court did not entertain them, stating 'everything has its own limits.' Rohatgi's final attempt to withdraw the petition or at least insert a statement allowing petitioners to approach the government was also rejected.
Mint
04-06-2025
- Business
- Mint
Vodafone Idea share price falls for second consecutive day. Here's why
Vodafone Idea share price continues to fall for second consecutive day on Wednesday after the telecom company said it is actively in discussions with the central government to seek relief regarding its long-pending Adjusted Gross Revenue (AGR) dues. Vodafone Idea stock fell over 1.33 per cent in early trades, however, recovered quickly rising nearly a per cent. At 9:55 am, the stock was trading at ₹ 6.68 apiece on National Stock Exchange (NSE). On Tuesday, Vodafone Idea shares saw a significant decline up to 4 per cent to close at ₹ 6.77. Vodafone Idea, currently grappling with financial difficulties, is in discussions with banks to secure debt funding aimed at supporting its long-term growth, according to CEO Akshaya Moondra. He noted that lenders would require transparency regarding the company's outstanding dues to the government before considering any loan approvals. Moondra further stated that the telecom firm is still negotiating with the central government for a practical solution to the Adjusted Gross Revenue (AGR) issue. He stressed that since the matter falls under policy, the government should have complete discretion to offer relief, without being constrained by judicial oversight. Highlighting the financial strain on the company, Moondra cited India's low Average Revenue Per User (ARPU) and unsustainable data tariffs as major challenges. He advocated for a pricing structure where high data consumers pay more, emphasizing that the sector's returns currently fail to meet capital costs. This comes after a significant blow from the Supreme Court, which recently denied the company's plea for relief, intensifying the crisis for the debt-laden operator. Vodafone Idea is burdened with AGR dues of nearly ₹ 30,000 crore and continues to lose market share. According to TRAI data, the company lost 6.47 lakh subscribers in April, reducing its total user base to 20.47 crore. Before the Supreme Court ruling, the company had urgently appealed to the telecom department, warning that without timely support from the government, it may not be able to continue operations beyond FY26. Despite narrowing its net loss to ₹ 7,166.1 crore in Q4 FY25, Vodafone Idea remains reliant on external funding. Its board has recently approved a fundraising plan of up to ₹ 20,000 crore, which is subject to shareholder and regulatory approval. Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
Time of India
03-06-2025
- Business
- Time of India
Government can give AGR relief if it wants to: Vodafone Idea CEO
Mumbai: Vodafone Idea's (Vi) chief executive Akshaya Moondra said observations by the top court has paved the way for the government to offer adjusted gross revenue (AGR) relief to telcos if it wants added that bank funding remains its priority and is crucial to the telco increasing its 4G coverage to 90% of the population from around 84% that is being done with its existing financial resources. The telco has earmarked roughly ₹6000 crore capex for the ongoing quarter, a small part of which could spill over into FY2Q. The carrier had spent ₹4,280 crore caped in Q4FY25, its highest quarterly capex since the merger in August, 2018, to expand 4G and roll out 5G to stem subscriber losses to rivals Reliance Jio and Bharti Airtel. The Vodafone Idea stock was down 0.9% at ₹6.98 in morning trade on the BSE Tuesday. 'Our view is that the government can do that (offer AGR relief)…Even when the reforms package was announced in 2021, there was some PIL filed in the Supreme Court, and that time also the court had stated to the effect that this is a policy matter, which is within the purview of the government, and they would not interfere in it,' Moondra said at the company's earnings call on Monday. 'If you look at the reforms package of 2021, the government had taken the initiative and I see no reason why the government should be constrained in any way to offer relief, if it decides to do,' he added. He was referring to the Supreme Court's May 19 judgment quashing telcos' review petition in the AGR matter. However, the bench had then clarified: 'if the government wants to help you (the petitioners), we are not coming in your way." 'Definitely post the (Supreme Court) judgment, we continue our engagement with the government to find a solution to the AGR matter,' Moondra said. The telco's AGR dues stood at ₹76,000 crore on March 31. Moondra further said that after the recent SC ruling, Vi has been aggressively pursuing talks with lenders for ₹20,000-22,000 crore bank funding, a priority for the telco. 'There are some activities which we must finish, which are currently in progress. So, we will get to a point of discussion with the banks somewhere this month once some of the prerequisites in terms of those actions and activities are completed,' the top executive said. He said banks needed more clarity on the AGR issue, but the recent conversion of spectrum dues into government equity has been a big step forward. '…banks would (still) want some clarity on the AGR dues, but…it is not preventing the discussions from going forward.' The company is also in talks with UK's Vodafone group to release a pre-agreed settlement amount, Moondra said. Vi, in its earnings statement, said that as of March 31, assets including around ₹6400 crore, are recoverable from co-parent Vodafone Group Plc. on payment of a part of the telco's AGR dues by June 30. That deadline has now been extended to Sept. 30. 'The company believes it will be able to realise this asset,' Vi said in its earnings statement. Cumulatively, during the year, the company has raised equity of ₹61,400 crore, including a follow-on public offer, preferential issuance to promoters and vendors, and an allotment of equity share to the government. Last week Vi's board also approved raising up to ₹20,000 crore more even as its net loss for the March quarter widened sequentially to ₹7,166 crore from ₹6,609 crore and it continued to lose subscribers. 'We have also taken an enabling approval…So our primary source of fundraising remains bank borrowing. And I think the conversion of the government dues to equity and along with the upgrade in the credit rating, those are facilitating factors for us to take those discussions forward,' Moondra said. Vi commenced 5G services in Mumbai, Delhi, Chandigarh and Patna last quarter and plans to cover all 17 circles where it has 5G spectrum by August 2025 as it contends with intense competition from rivals Reliance Jio and Bharti Airtel. In Q4FY25, Vi added 6,900 new telecom towers, also the largest quarterly addition since merger. Vi's 4G population coverage reached 83%, up from 77% a year ago. Vi ended the March quarter with 198.2 million users, falling from 199.2 million in the December quarter. Its 4G subscribers base grew a tad to 126.4 million as of March-end from 126 million as of December-end. Moondra acknowledged the pressure on subscriber retention, saying, 'We are actively focused on improving our 4G experience and network coverage to bring back churned users and grow our base.' He reiterated the need for tariff hikes and a review of the tariff structure, which should entail higher prices for subscribers having higher levels of consumption.
Mint
03-06-2025
- Business
- Mint
Vodafone Idea share price falls 2% after telco resumes relief talks with govt on AGR dues
Vodafone Idea share price fell over 2 per cent in Tuesday's trading session after the telecom company said that it is actively working with the central government to obtain relief for its longstanding Adjusted Gross Revenue (AGR) liabilities. However, at 9:20 am, the Vodafone Idea stock recovered losses by climbing intraday high to ₹ 7.02 apiece on June 3. The company, which is facing challenges, is in talks with banks to obtain debt financing for its long-term growth, said CEO Akshaya Moondra. She added that banks will seek clear information about the telco's outstanding payments to the government before approving any loans. However, Moondra noted that this requirement is not hindering the progress of the discussions. Vodafone Idea CEO Akshaya Moondra mentioned that the company is still in talks with the central government to reach a practical resolution on the AGR issue. He emphasized that the government should have full freedom to provide relief, especially since this is a policy matter beyond the scope of judicial intervention. Moondra also pointed out the financial pressures the company faces, highlighting India's low Average Revenue Per User (ARPU) and the unsustainable pricing of data services as key obstacles. He called for a pricing model where heavy data users bear a proportionally higher cost, stressing that the telecom sector's current returns fall short of the cost of capital. This update comes after the Supreme Court recently rejected the company's request for relief, dealing a major setback to the heavily indebted telecom operator. The telecom company is struggling with AGR liabilities close to ₹ 30,000 crore and a declining market share. TRAI data shows that Vodafone Idea's subscriber count dropped by 6.47 lakh in April, bringing the total to 20.47 crore. Ahead of the Supreme Court's decision, the telecom company had sent an urgent appeal to the telecom department, cautioning that without timely government support, it might not sustain operations beyond FY26. Although the company reduced its net loss to ₹ 7,166.1 crore in Q4 FY25, Vodafone Idea continues to depend heavily on external aid. Recently, its board approved a plan to raise up to ₹ 20,000 crore, pending shareholder and regulatory clearances. According to Riyank Arora, Technical Analyst at Mehta Equities Ltd, Vodafone Idea is showing signs of stability above its support at ₹ 6.80. As long as the stock holds this level, a short-term upward move toward the target of ₹ 7.55 looks possible. 'A breakout above ₹ 7.00 with volume can add momentum to the move. However, if it breaks below ₹ 6.80, weakness could set in, and the stock may drift lower. Traders can consider buying with a stop-loss at ₹ 6.80, aiming for ₹ 7.55 in the near term. The trend remains cautiously positive above support,' Arora said. Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
New Indian Express
02-06-2025
- Business
- New Indian Express
Vi still in talks with govt on AGR dues after Supreme court's dismissal of plea
'What the government will do I can't comment on behalf of the government post judgment. We are continuing to engagement with the government to find the solution with the AGR dues,' said Moondra. "Our view is that the government can provide relief," Moondra reiterated. "In some ways, if you look at the 2021 reforms package, the government took the initiative, and I see no reason why the government should be constrained in any way from offering the relief it decides to do so. However, Communications Minister Jyotiraditya Scindia reportedly refused to entertain any plan to provide relief on the AGR front to telecom companies. He also mentioned that Vodafone Idea will not receive any further equity conversion from the government beyond the current 49%, and it's now the company's responsibility to manage its profit and loss and balance sheet. In its quarterly result, Vi reported a consolidated net loss of Rs 7,166.1 crore for the quarter ending March. It is marginal improvement from Rs 7,674.6 crore recorded in the same period last year. However, losses widened compared to the previous quarter's Rs 6,609.3 crore. The company's revenue grew 3.8% year-on-year to Rs 11,013.5 crore, driven by tariff hikes and customer upgrades. The average revenue per user (ARPU) rose to Rs 175. The company also announced plans to raise another Rs. 20,000 crore through a further public offering (FPO), private placement, or other permissible modes. On the fundraising, Moondra mentioned that discussions are ongoing with banks, but banks want clarity on the AGR issue. Vi stated its intention to launch 5G services across 17 telecom circles by August.
