Showing posts with label Idea Vodafone. Show all posts
Showing posts with label Idea Vodafone. Show all posts

Monday, 17 February 2020

Vodafone and Idea may discontinue their service in India, what is the reason

After the Supreme Court order, telecom company Vodafone and Idea are caught in a big crisis.  After heavy losses every month, it has become more difficult for Idea-Vodafone to run its operations (Vodafone Idea may shut the shop) in India.  That is why a decision can be taken on the future of the company in India today in the board meeting of the company. It will also be decided in the meeting on what other options the company has to pay the amount of DoT. 

 Idea-Vodafone caught in a big mess:   Vodafone-Idea owes AGR of Rs 53,000 crore.  At the same time, the company incurred a total loss of Rs 6,439 crore during the third quarter i.e. October-December.  This is the sixth consecutive quarter when the company has incurred losses.  After this news, the company's stock has fallen by more than 20 percent.  what will happen now-   Vivek Mittal, head of research, VM Portfolio, says that 'Vodafone Idea has no money.  This way she can go to the NCLT, as she has to pay the dues before the next hearing of the case on 17 March.  If the case is accepted, then under the Bankruptcy Law, there will be a ban on repaying the dues and the company may not have to pay.   What is the matter?   In the AGR case, the Supreme Court has denied any relief to the telecom companies.  The court has taken a tough stand against these companies.  On 16 January, a bench of Justice Arun Mishra ordered the telecom companies to repay the adjusted gross revenue (AGR) to the government.