Vodafone Idea Gets Major Relief: Supreme Court Allows Govt to Reconsider AGR Dues

Image Source: The Daily Guardian

The Supreme Court has permitted the government to review and reconsider Vodafone Idea’s grievances over additional Adjusted Gross Revenue (AGR) dues, marking a significant relief for the financially stressed telecom operator. The decision, driven by the government’s 49% stake and the interests of 20 crore consumers, could pave the way for a reassessment of disputed dues and potential financial stability for Vodafone Idea.

The Supreme Court has allowed the Union government to re-examine Vodafone Idea’s plea against the Department of Telecommunications’ (DoT) fresh demand for AGR dues, which currently stands at ₹9,450 crore. The court observed that the issue falls within the government’s policy domain and emphasized that the decision to reconsider the matter is in the larger public interest, given the government’s substantial equity stake and the impact on 20 crore consumers.

Notable Updates

The Supreme Court bench, led by Chief Justice B.R. Gavai and Justice K. Vinod Chandran, permitted the government to revisit the AGR dues demand, noting that the government’s 49% stake in Vodafone Idea and the interests of millions of consumers warranted a fresh look at the issue.

Solicitor General Tushar Mehta informed the court that the government is willing to re-examine the AGR liability, considering the changed circumstances and the government’s role as both regulator and stakeholder.

Vodafone Idea had challenged the DoT’s revised demand, arguing that a substantial portion of the dues pertains to the pre-FY17 period, which was already settled by the Supreme Court’s 2020 judgment.

The total disputed demand includes ₹2,774 crore for FY18–19, ₹5,675 crore for pre-merger liabilities, and other reconciliations flagged by DoT.

The court disposed of Vodafone Idea’s petition, formally recording the government’s assurance to reconsider the issue and take an appropriate decision under the law.

Important Points

The government’s willingness to reconsider the AGR dues reflects its evolving role as a major shareholder in Vodafone Idea, following the conversion of a portion of interest dues into equity.

The decision could have a direct bearing on the financial health of Vodafone Idea and the stability of its 20 crore customers.

The Supreme Court’s order is seen as a significant departure from the government’s earlier stance and marks a pivotal development in the long-running AGR dispute.

Sources:: Hindustan Times, Deccan Herald, Indian Express, PTI

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