After Thursday's judgment, the industry will need to pay these dues to the government. The total dues amount to Rs 92,641 crore (disputed actual demand is Rs 23,189 crore, levy of interest of Rs 41,650 crore, penalty of Rs 10,923 crore and interest on penalty of Rs 16,878 crore), Business Standard reported. CLICK HERE TO READ FULL REPORT
After the judgment, a statement released by Vodafone Idea
said, “Clearly this judgment has significantly damaging implications for India’s telecom industry, which is already reeling under huge financial stress and is left with only four operators. Significant investment of several billion dollars has been made in creating world class networks”.
“The decision comes as a major steback to the incumbent telcos as it implies higher payments when the industry is facing price-war and intense competition. The inclusion of non-core revenues in the AGR will increase the base of adjusted gross revenue for telcos which, in turn, means higher charges for license fees and SUC,” CARE Ratings said in an emailed note.
Meanwhile, shares of Bharti Airtel were trading flat at Rs 372 on the BSE at 10:32 am; after falling 2 per cent at Rs 365 on the BSE intra-day deals today. In comparison, the S&P BSE Sensex was down 0.12 per cent at 38,974 level.