Vodafone-Idea Telecom, the loss-making company, has paid AGR dues due to the government.
Telecom company Vodafone Idea said on Monday that it has made an additional payment of Rs 3,354 crore to the Department of Telecommunications on the dues of adjusted gross revenue (AGR). The company told BSE that it has now paid the entire amount of AGR arrears as per the self-assessment. With this payment, the company has so far given Rs 6,854 crore towards AGR arrears to the government.
The company said, “The company has paid Rs 3,354 crore to the Department of Telecommunications today (Monday). In this way, the balance in the principal amount of AGR dues is paid. The company has paid the entire principal amount of Rs 6,854 crore towards AGR dues. The Department of Telecommunications has demanded about Rs 53,000 crore for AGR dues from Vodafone Idea. It also includes interest on interest, penalty, and delay in payment of the amount. The company said that it has submitted the report of the AGR liability to the Department of Telecommunications on March 6. The company had earlier paid Rs 2,500 crore on February 17 and Rs 1,000 crore on February 20 for AGR dues.
Airtel, Vodafone should disclose how AGR arrears are calculated:
Bharti Airtel and Vodafone Idea Ltd. Estimates of adjusted gross revenue (AGR) dues are not even half of what DOT estimates. In such a report, an analyst said that both telecom companies should tell what is the method of their calculation. Minor shareholders have the right to know the reason for the difference in AGR arrears.
The Supreme Court had in October last year ruled that non-telecom revenue should also be included in the calculation of spectrum fee and license fee. On this basis, DoT has asked Bharti Airtel to pay AGR dues of Rs 35,000 crore. At the same time, according to the assessment of AGR arrears by Airtel itself, this amount is Rs 13,004 crore. Similarly, in the case of Vodafone Idea, the Department of Telecommunications has made due of Rs 53,000 crore. At the same time, according to the company’s own assessment, it owes Rs 21,533 crore.
A report released on March 9 by Kotak Institutional Equities said, “The matter is still in court.” We believe that once the legal process is over, both Airtel and Vodafone Idea should show the method of self-assessment. They should disclose what has made such a huge difference between their assessment and that of the Department of Telecommunications. The report said that disclosure is not statutorily mandatory, but we hold that minority shareholders have the right to know about it.
Vodafone Idea has so far paid Rs 3,500 crore in arrears based on self-assessment. Bharti Airtel has so far paid Rs 13,004 crore to the government. Apart from this, he has paid an additional amount of Rs 5,000 crore to match the difference in matching. Similarly, Tata Teleservices has paid Rs 2,197 crore. To fill any gap, the company has deposited an additional Rs 2,000 crore. At the same time, the liability of Rs 14,000 crore has been made on the company by the Department of Telecommunications.
