Vodafone Idea Ltd’s demand for an extra relaxed payment schedule for his or her adjusted gross sales (AGR) payment is unjustified and amounts to blackmailing the govt, a non-profit group has said.
“We are astonished by the request of VIL to defer payment of state dues thanks to its inability to boost funds which clearly establish its mismanagement of affairs in terms of operation and financial management. it miserably does not raise funds by dilution of equity and upgrade its networks with the latest technology to scale back cost etc,” said Telecom Watchdog during a letter to the Communications Minister.
Telecom is one among the few sectors unaffected thanks to the Covid-19 pandemic and its revenues have actually increased thanks to demand for data services, it said. “Such an invitation-only points to the habit of seeking further concessions by blackmailing the govt within the name of reduction in competition within the liberalised sector. The deferments in payment of state dues are sought by misleading with incorrect facts and despite financially sound promoters as detailed subsequently below. ”
No government support or intervention within the matter of tariffs should be considered, said the group. Such steps will cause losses to the govt and harassment to the consumers and wouldn’t help this company to survive.
VIL should be advised to infuse additional equity within the company or make serious efforts to boost additional funds by dilution of existing equity for fresh investment in the up-gradation of their network and increase its operational efficiency.