Vi amends pact with promoter to get Rs 5,836 crore in liabilities

Vodafone Idea (Vi) has amended a major agreement with the Vodafone group, one of the promoters of the telco, to secure the recovery of nearly ₹5,836 crore linked to liabilities arising from the 2017 Vodafone-Idea merger, the company said in a regulatory filing on Tuesday.

The amendment relates to the contingent liability adjustment mechanism - a framework put in place at the time of the merger. When Vodafone India and Idea merged in 2017, they agreed that if any old legal, tax or regulatory liabilities surfaced later, Vodafone promoters would compensate the merged company up to a capped amount of ₹8,369 crore.

Of this, ₹1,975 crore has been paid, while remaining amount was pending recovery. As of now, Vi has been recognising ₹6,394 crore as receivable from Vodafone group under CLAM framework, filing showed. The original CLAM arrangement was supposed to expire on June 30, 2025 and later got extended to December 31, 2025. Before it expired, Vi and Vodafone promoters have revised settlement terms according to which, Vi expects to receive around ₹5,836 crore.


The revised recovery structure includes ₹2,307 crore in cash, which will be paid by Vodafone promoters over 12 months. The remaining will be secured through 3,280 million equity shares of Vi held by certain Vodafone group entities for five years.