Noida, June 9 (APAC Media): Shares of Vodafone Idea and Bharti Airtel rose to 2% on Monday after the Bombay High Court set aside the government’s retrospective one-time spectrum charge (OTSC) demands, offering significant relief to the telecom operators.
Vodafone Idea shares gained as much as 2%, while Bharti Airtel also traded higher during the session as investors welcomed the court’s ruling, which removes a long-standing regulatory overhang on the sector.
The Bombay High Court quashed orders issued by the Department of Telecommunications (DoT) seeking retrospective spectrum-related payments from telecom operators. The court also invalidated all consequential actions arising from those demands.
“The impugned demands and all actions taken pursuant thereto stand quashed and set aside,” the court said in its order.
The dispute relates to one-time spectrum charges levied by the government on telecom companies for spectrum held beyond contracted limits. The operators had challenged the demands, arguing that the charges were imposed retrospectively without legal backing.
Market participants said the verdict is particularly significant for Vodafone Idea, which continues to face financial stress and substantial statutory liabilities.
“The ruling removes a major uncertainty and is sentimentally positive for the telecom sector, especially for Vodafone Idea,” said a Mumbai-based telecom analyst.
According to industry estimates, the disputed dues ran into several thousand crore rupees. Analysts noted that while the judgement eases pressure on telecom operators, other liabilities, including adjusted gross revenue (AGR) dues, remain a key concern for the sector.
“The decision provides legal clarity on legacy spectrum issues, though broader balance-sheet challenges have not disappeared,” another market expert said.
The judgement comes as Vodafone Idea is pursuing fundraising efforts and expanding network investments to improve competitiveness, while Bharti Airtel continues to strengthen its 5G footprint across the country.
Investors will now watch whether the Centre decides to challenge the Bombay High Court ruling before the Supreme Court.
The telecom sector has been grappling with regulatory disputes and mounting debt for years, making the court’s decision one of the most significant legal wins for operators in recent times.
–ENDS–
Disclaimer:Â Views expressed are those of experts and do not reflect APAC Media. This is for informational purposes only, not financial advice. We are not responsible for investment decisions. Please consult a qualified financial advisor before investing.
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