Shares of Vodafone Idea Ltd and Indus Towers on Thursday (September 19) experienced a sharp decline, with Vodafone Idea's stock hitting the 15 percent lower circuit limit and Indus Towers falling by 10 percent.

Shares of Vodafone Idea have declined as much as 6% on Thursday after the Supreme Court upheld the Adjusted Gross Revenue ruling against the telecom companies and upheld the quantum of the AGR demand.

The court upheld the earlier decision, thereby reinforcing the obligation of telecom companies to pay their AGR dues.

Vodafone Idea reported an AGR liability of Rs 70,300 crore, including accumulated interest. VIL’s self-assessed AGR liability was 50 per cent lower at Rs 35,400 crore.

Vodafone Idea (VIL) recently reported a massive adjusted gross revenue (AGR) liability of ₹70,300 crore, which includes accumulated interest. However, VIL’s self-assessed AGR liability is significantly lower, at ₹35,400 crore, a 50% reduction compared to the official figure.

The Bench of Chief Justice of India D Y Chandrachud, and judges Sanjiv Khanna and B R Gavai, in their order of August 30, which was made public on Thursday, rejected the hearing of the curative petition and dismissed the pleas.

Vodafone Idea share price declined 10% after Supreme Court rejected a plea by telecom companies on re-computation of adjusted gross revenues (AGR) dues.

Vodafone Idea shares plunged 20% after the Supreme Court rejected its plea to recalculate AGR dues. Analysts believe the company will need to raise funds to repay the dues. Competition and tariff hikes may further impact Vodafone Idea's survival.

Vodafone Idea share price plunged 10 per cent to Rs 11.61 per share on the National Stock Exchange (NSE) on Thursday

AGR is the basis for license fee calculation owed to the government.The apex court had in 2021 rejected a similar plea to correct errors in AGR calculation, arguing that it should only take into account revenue accrued from their core services.