NEW DELHI: Vodafone Idea on Thursday told
Supreme Court (SC) that it is in no position to furnish bank guarantee, citing losses of over Rs 1 lakh crore. Another telecom operator
Bharti Airtel suggested that the telecom company needs to sit down with the government on calculations of the dues.
In the matter,
DoT said while telecom operators have filed affidavits, they still need time to reply on the roadmaps and timelines for the payment of their
AGR dues to the government and the security they seek to provide against it.
At 11.54 am, shares of Vodafone Idea were ruling 1.32 per cent lower at Rs 9.72. The stock was up nearly 1 per cent in morning trade.
Shares of Bharti Airtel were unfazed at Rs 567.90, up 0.78 per cent.
DoT told Supreme Court (SC) it has withdrawn 96 per cent of the AGR demand from PSUs, amounting to Rs 3.7 lakh crore. It has filed affidavits explaining the reasons why it sought AGR dues from PSUs.
On Vodafone's statement, SC asked the company about last five years' profits and income tax returns.
Vodafone Idea admitted no bank will give the company loan today and said it will have to fold up if asked to pay the dues upfront.
"Payment in installment only way to remain a going concern," it said.
To this argument, SC asked what if the company goes into insolvency in the next 20 years.
The apex court asked telcos to come up with a reasonable payment plan, reminding them that telecom is the only sector that is minting money during the pandemic.
SC said the government needs the money during the pandemic, and told Vodafone Idea that it is not the only player in the sector.