• Deccan Chronicle
  • Andhra Bhoomi
  • Asian Age
  • ePaper
  •  Auto Refresh
Home

ePaper
Last Updated:06:48 AM IST | Monday, May 23, 2022
  • Home
  • Politics, Plan And Policy
  • Markets
  • Companies
  • Economy
  • In Other News
  • Autos
  • Just In
Menu
  • Home
  • Politics, Plan And Policy
  • Markets
  • Companies
  • Economy
  • In Other News
  • Autos
  • Just In
Home > Companies > Vodafone Idea to shut down if no relief comes: Kumar Mangalam Birla
Companies
Vodafone Idea to shut down if no relief comes: Kumar Mangalam Birla
Madhusudan Sahoo
By  
  , Published : Dec 7, 2019, 2:28 am IST | Updated : Dec 7, 2019, 2:28 am IST

Vodafone Idea shares fell over 5 per cent on Friday, spooked by Birla’s comments. The stock slumped 5.34 per cent at Rs 6.92.

Kumar Mangalam Birla (Photo: File | PTI)
Kumar Mangalam Birla (Photo: File | PTI)

New Delhi: Anticipating a ‘bailout option’ from the government to save the company from closure, Vodafone Idea Chairman Kumar Mangalam Birla said on Friday there is no sense that good money should follow bad money. Birla said the company would face a shutdown, rather a ‘forced closure,’ if the government doesn’t provide relief to the telecom service providers.

He said the Aditya Birla Group will not invest money in the company in the absence of relief from the government. “If we are not getting anything then I think it is end of the story for Vodafone Idea, which will shutdown if the government does not provide relief on the liability it faces in past statutory dues following a Supreme Court order,” Birla said at an event here.

Vodafone Idea Ltd, India’s second largest mobile service provider by subscriber base, is facing pressure from the government on payment dues of a staggering Rs 53,038 crore.

 Birla has called for a dialogue between government officials and the judiciary to agree to a settlement for the troubled operators, but he warned that “If these came to nought, I think it is the end of the story for Vodafone Idea. Because the telecom sector is key to India’s digital goals, more relief from the government should be forthcoming.”

On the massive dues to the government over adjusted gross revenues (AGR), Birla said, “The big elephant in the room is AGR. Which is actually, I think, something which lies in the court of judiciary. I believe government can have a dialogue. This was a suit filed by the government against telecom service providers.”

Vodafone Idea shares fell over 5 per cent on Friday, spooked by Birla’s comments. The stock slumped 5.34 per cent at Rs 6.92.

The Supreme Court had upheld the government position that non-telecom revenues have to be included in the AGR for calculating dues. “Since the government has won, it gives them headroom to talk to judiciary and try to find some of solution. I don’t know which form or shape it takes,” he added.

end-of
Tags: 
kumar mangalam birla, vodafone idea
Location: 
India, Delhi, New Delhi
Latest From Companies
HUL CMD Sanjiv Mehta said the results show that the long-term structural opportunity of FMCG in India remains intact.

HUL Q1 net profit rises 5.7 pc to Rs 1,897 crore

The management of Radar has built and exited 3 different businesses themselves which helps the sensitise first time and even veteran entrepreneurs.

Radar India advisors scales a new high

The top seven cities of Delhi, Mumbai, Kolkata, Chennai, Hyderabad, Pune and Bengaluru accounted for 4.45 billion km.

Delhi sees more night trips than Bengaluru, Mumbai, says Ola

Most Popular

Mukesh Ambani 9th richest on Forbes' real-time billionaires list
Top credit card myths harmful for your financial well-being
Microsoft CEO Satya Nadella tops Fortune's Businessperson of the Year 2019
Employment growth slowed down in last two years: report
GST structure: key challenges and its solutions

Editor's Picks

Income tax e-filers drop by over 6.6 lakh in FY19: Official data
Swiping on your smartphone reveals a lot about you to your social media company
  • Read Financial Chronicle as it appears in print.
  • Subscribe, and get it delivered in the inbox everyday.
  • Politics, Plan And Policy
  • Markets
  • Companies
  • Economy
  • In Other News
  • Autos
  • Just In
  • Home
  • About Us
  • Contact Us
  • Terms of Service
  • Privacy Guidelines
  • Copyright © 2019 Financial Chronicle, All rights reserved
Developed & Maintained By Daksham