New Delhi | Vodafone Idea (VI) received major relief from the Supreme Court after the government agreed to revisit its demand for additional adjusted gross revenue (AGR) dues for the financial year 2016–17 and make a decision based on legal and policy considerations.
During the hearing before a Bench led by Chief Justice of India B.R. Gavai, Solicitor General Tushar Mehta, representing the Centre, informed the court that circumstances had significantly changed since the earlier AGR litigation involving Vodafone Idea.
Mr. Mehta highlighted that the government now holds a 49% equity stake in the telecom operator, linking public interest directly with the company’s future. He noted that Vodafone Idea serves over 200 million subscribers, and any decision regarding the company would inevitably impact a large section of the public.
The Solicitor General also mentioned that the government had concerns such as over-invoicing, which would be reviewed thoroughly during the reconsideration process.
The court observed that the issue had moved into the policy domain, given the government’s substantial equity infusion and the involvement of millions of consumers. It found no fault with the Centre’s plan to re-evaluate the additional AGR dues for FY 2016–17, emphasizing that such a step serves the larger public interest.
Vodafone Idea had earlier challenged the Department of Telecommunications’ (DoT) additional AGR demand, arguing that its liabilities had already been finalized and could not be reassessed. The company sought the court’s intervention to quash the new demand and allow a complete reconciliation of dues up to FY 2016–17.
This fresh case emerged just months after the Supreme Court had dismissed similar petitions by Bharti Airtel, Vodafone Idea, and Tata Teleservices, who had requested relief from paying interest, penalties, and interest on penalties related to their AGR dues, citing financial distress. In its May order, the court had termed those pleas as “misconceived” and emphasized the need for finality in the long-running AGR dispute.
Earlier, on September 19, the apex court had also rejected a curative petition filed by the telecom companies, challenging the 2019 verdict that upheld the DoT’s recovery of approximately ₹92,000 crore in AGR dues.
With the government now set to reassess its additional demand, Vodafone Idea gains temporary respite as the long-standing AGR battle enters a new policy-driven phase.
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