Centre Can Reconsider Vodafone Idea's AGR Dues — What Supreme Court Order Says
The bench clarified that the matter falls within the policy domain of the Union government and that the Court would not interfere in such policy-related considerations.
The Supreme Court on Wednesday allowed the Union government to reconsider issues related to Vodafone Idea Ltd.’s adjusted gross revenue dues raised for the period up to fiscal year 2016-2017, offering a potential breather to the debt-laden telecom operator.
In its order, the bench observed that the Union of India is willing to reconsider the matter and take an appropriate decision, subject to the permission of the Court. The Court said that, given the “peculiar facts and circumstances of the case,” there would be no impediment to the Centre reviewing the issue and taking a fresh decision in accordance with law.
The bench clarified that the matter falls within the policy domain of the Union government and that the Court would not interfere in such policy-related considerations. “As per the peculiar facts and circumstances of the case, the Union of India, keeping in view the larger public interest, desires to reconsider the issue, there is no reason to restrain or prevent it from doing so,” the order on Wednesday stated.
Significantly, the Supreme Court noted that Vodafone Idea’s plea was limited to the additional AGR demand raised by the Department of Telecommunications for the period up to the financial year 2016–17. The order explicitly applies only to Vodafone Idea, given the unique circumstances surrounding its case.
“In that view of the matter, we dispose of the present writ petition with the aforesaid observations,” the Court said, effectively closing the petition while paving the way for the government to reassess the company’s dues.
The development offers Vodafone Idea a potential opportunity to seek relief in its long-standing dispute over AGR-related liabilities, which have weighed heavily on its financial position since the Supreme Court’s earlier rulings on the matter.
In September, the troubled carrier sought a waiver of penalty and interest on adjusted gross revenue demand of Rs 9,450 crore raised by the Department of Telecommunications, contending that a substantial portion of the demand pertains to the pre-FY17 period already settled by the apex court in 2020.
The company argued that the demand goes beyond the scope of the apex court’s earlier ruling on AGR liabilities, as per reports. Of the total dues, Rs 2,774 crore pertains to the post-merger Vodafone Idea entity, while Rs 5,675 crore relates to liabilities of the pre-merger Vodafone Group.
The government has become the single largest shareholder in Vodafone Idea after acquiring shares worth Rs 36,950 crore in lieu of outstanding spectrum auction dues in March. Earlier, the government had acquired around 33% stake in 2023 in lieu of statutory dues worth over Rs 16,000 crore.
