Vodafone Idea share price rallied over 3% in early trade on Tuesday after the Bombay High Court quashed the government’s demand of one-time spectrum charge (OTSC) aggregating to ₹2,113 crore.
Vodafone Idea shares rose as much as 3.61% to ₹14.90 apiece on the BSE. Meanwhile, Bharti Airtel shares also gained as much as 1.1% to ₹1,835.85 apiece on the BSE.
In a relief to telecom firms Bharti Airtel and Vodafone Idea, the Bombay High Court on Monday quashed the Centre’s 2012 decision to impose a one-time spectrum charge for spectrum held above 6.2 MHz from 2008 onwards, questioning its source of power to make such a call. It also ordered return of Bank Guarantees given to the Department of Telecommunications (DoT).
The court set aside the demand notices issued by the Union government seeking recovery of OTSC, while noting that the government has not been able to show any source of power to issue such a decision and the consequent demand notices, PTI reported.
On November 8, 2012, the Union Cabinet took a decision that one-time charge would be levied for spectrum held beyond 6.2 MHz from July 2008 onwards. Consequently, demand notices were issued to Bharti Airtel and Vodafone Idea Ltd specifying the amounts payable by them towards one-time spectrum charge.
The companies moved the HC in January 2013 against the decision and the demand notices. At the time, the high court had granted interim relief to the petitioners and said no coercive action shall be taken against them pending the hearing.
The court, in its judgment on Monday, said it cannot be contended that since spectrum is recognized as a scarce and finite natural resource, the Union of India would be entitled to resile from the terms of contract in a unilateral manner.
Vodafone Idea Share Price Performance
Vodafone Idea share price has gained 30% in one month, and has rallied 47% in three months. The telecom stock has surged 36% in six months, while it has jumped 106% in one year. Vodafone Idea shares have delivered 100% returns in one year and 50% over the past 5 years.
At 10:20 AM, Vodafone Idea share price was trading 1.25% higher at ₹14.56 apiece on the BSE.
