Following the Supreme Court's strictness within the Adjusted Gross Revenue (AGR) challenge, there was uncertainty over the way forward for Vodafone-Idea. The firm owes Rs 53,038 crore.
But, chairman of the corporate Kumar Mangalam Birla has already stated that the corporate should be closed if there isn’t any aid in fee. In such a scenario, after Friday's order of the Supreme Court, questions are being raised whether or not Vodafone-Idea will organize the cash or will select to go bankrupt course of? The telecom division gave time until midnight on Friday for fee. But, there isn’t any assertion from Vodafone-Idea.
Next listening to on March 17 in AGR challenge
The Supreme Court on Friday instructed the telecom firms that regardless of the cancellation of the order of October 24, 2019 and the second petition, why didn’t pay the excellent quantity of AGR? <! –
Why not take contempt motion in opposition to you. The subsequent listening to on this challenge will likely be held on 17 March.
1,15,850 crore mortgage on Vodafone-Idea
Vodafone Group has already stated that it’ll not make investments any extra capital within the three way partnership Vodafone-Idea. As of 31 December, Vodafone-Idea mortgage was Rs 1,15,850 crore. This doesn’t embrace liabilities associated to the lease. US funding financial institution BOFA Securities stated on Friday that Vodafone-Idea is underneath risk. Will there be solely two firms within the telecom sector of India?
Risk of going to 11700 jobs if Vodafone-Idea is closed
According to the report of reports company PTI, 11,700 direct and 1 lakh oblique jobs have additionally come underneath risk as a result of uncertainty on Vodafone-Idea. Reliance Communications (RCom) chairman Anil Ambani stated that 20 lakh jobs within the telecom sector have ended. RCom had determined to enter insolvency course of final yr.
Vodafone-Idea didn’t recuperate even after one and half yr of merger
When the Narendra Modi authorities got here to energy for the primary time in May 2014, there have been 13 telecom firms within the nation, however a lot of the firms couldn’t survive as a result of rising value and competitors. Competition within the telecom sector has elevated quickly after the arrival of Reliance Jio. The difficulties of different firms elevated as a result of Jio's free knowledge and low-cost calling charges. RCom needed to shut down the business. Vodafone and Idea needed to resolve the merger, however even after one and a half years after the merger was accomplished, the corporate has not been capable of overcome the difficulties.