Vodafone Idea has gone to India’s Supreme Court to challenge the government’s rejection of a request by the debt-saddled telecoms giant to waive more than US$5 billion it owes the government, documents show.
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The government on April 29 rejected the request by Vodafone Idea CEO Akshaya Moondra for a waiver on interest and penalties it owes on US$9.76 billion in dues, saying the survival of India’s third-largest telecoms player was at risk, according to the letter seen by journalists on Sunday.
“The request cannot be considered,” the communications ministry wrote.
Vodafone Idea, a joint venture between UK-based Vodafone Group Plc and India’s Aditya Birla Group, filed a plea in the Supreme Court on Thursday asking the judges to direct New Delhi to act “in public interest”, given the “sensitive telecom sector”, according to the filing, which is not public.
Vodafone Idea and the government did not respond to requests for comment.
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The company has struggled to pay outstanding spectrum and revenue-sharing dues since a landmark 2019 Supreme Court order that widened the scope of revenues on which the dues are assessed. The ruling on adjusted gross revenue has been the biggest overhang for India’s telecoms industry, increasing demands on companies by billions of dollars.
