Vodafone says future in India could be in doubt without govt relief

British telecom giant Vodafone on Tuesday said its future in India could be in doubt if it is forced to pay thousands of crores in statutory dues following the Supreme Court ruling.

Having made no provision for dues that have been locked up in legal dispute for more than a decade, Vodafone chief executive Nick Read said the government needs to ease off on payment demands to ensure a future for group's India joint venture, Vodafone-Idea Ltd.

"Financially there's been a heavy burden through unsupportive regulation, excessive taxes and on top of that we got the negative Supreme Court decision," he said on a call with reporters after first-half results.

India, he said, had been "a very challenging situation for a long time".

"It's a very critical situation," he said when asked if it made sense for Vodafone to remain in India without any relief package. "The government has stated its desire not to end up with a monopoly."
It said the 1.9 billion euros in the loss for the group during six months ended September 30 "primarily reflects losses in relation to Vodafone-Idea post an adverse judgement against the industry by the Supreme Court of India."
"In October, the Supreme Court in India ruled against the industry in a dispute over the calculation of licence and other regulatory fees, and Vodafone Idea is now liable for very substantial demands made by the Department of Telecommunications in relation to these fees," the company said in its earnings statement. "We are actively engaging with the government to seek financial relief for Vodafone Idea."
Vodafone said it has "no obligation" to fund Vodafone Idea Ltd losses and so it has "has recognised its share of estimated Vodafone Idea Ltd (VIL) losses arising from both its operating activities and those in relation to the (Supreme Court) judgement to an amount that is limited to the remaining carrying value of VIL, which is therefore reduced to nil."