Shares of Vodafone Idea took a sharp knock, down over 39 percent after the Supreme Court (SC) says no further objections to be allowed against payable dues by telcos.
Shares of Vodafone Idea took a sharp knock, down over 39 percent after the Supreme Court (SC) said that no self-assessment can be done by telcos. It added that no further objections to be allowed against payable dues by telcos.
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The stock has fallen 47 percent from its intra-day high of Rs 5.5 per share to its day's low of Rs 2.9 on BSE. The stock, however, rebounded a bit and was trading 23 percent lower at Rs 3.8 per share at 11:36 am.
However, Bharti Airtel and Reliance Industries continued trading over half a percent higher post the verdict.
The Apex Court also observed that it would summon DoT officials responsible for self-assessment. "We would neither spare DoT, nor telecom companies," it added.
Supreme Court also said that the telecom companies are trying to influence us through the media. "We won’t tolerate this, every company is violating orders and they want to hoodwink us. If required, we will summon MDs of telcos and send them to the jail from here," the SC observed.
The Centre sought the apex court's approval for a 20-year window for payment of AGR-related dues. Telecom department said that the AGR burden, which is nearly Rs 1 lakh crore, will have adverse implications across the sector and to avoid that it is crucial that the court amend its judgment.
The formula that is being proposed by the DoT is that a 20-year window be provided. The payment be staggered across 20-years and that will provide much-needed relief to the telecom sector, it said. The government in its plea asked to waive interest on principal and penalty beyond the date of judgment. It stood for a levy of 8 percent interest instead of 12 percent on pending dues.
First Published: IST