New Delhi, Sep 19 (UNI) The Supreme Court today heard a petition filed by Vodafone Idea Ltd challenging a fresh Rs 9,450 crore adjusted gross revenue (AGR) demand raised by the Department of Telecommunications (DoT).
The company has sought quashing of the demand, stating that a large part of it pertains to dues already settled by the apex court’s 2020 judgment.
A bench comprising Chief Justice of India B.R. Gavai, Justice Vinod Chandran, and Justice N.V. Anjaria took note of the submissions.
The Court observed that there has to be “some finality” to these proceedings.
Solicitor General Tushar Mehta, appearing for the union Government, sought time to work out a solution, noting that the government has already infused 49% equity in Vodafone Idea in public interest.
According to Vodafone Idea’s petition, out of the total demand of Rs 9,450 crore, around Rs 2,774 crore pertains to the post-merger entity, while Rs 5,675 crore relates to the pre-merger Vodafone Group.
The company argued that about Rs 5,606 crore of the demand relates to dues up to FY 2016–17, which were already settled by the Supreme Court in its March 18, 2020 ruling.
That judgment had held that no reassessment of pre-FY17 dues was permissible.
The DoT’s revised calculation also included demands for FY 2018–19, which the company has contested, alleging duplication of amounts and seeking reconciliation.
Vodafone Idea contended that these fresh demands exceed the scope of the Court’s 2020 judgment.
In its plea, the telecom operator stated that the new demand “threatens the very existence” of the company and impacts the livelihood of over 18,000 employees and nearly 198 million subscribers.
It further highlighted that the additional financial burden comes at a time when it is raising funds to expand its 4G network and roll out 5G services to remain competitive.
The company also pointed out that once the government’s four-year moratorium on AGR payments ends in March 2026, it will have to pay Rs 16,428 crore in AGR instalments along with Rs 2,641 crore for spectrum instalments starting June 2026.
Vodafone Idea estimated its total outstanding liabilities, including AGR dues, deferred spectrum payments, interest, and penalties, at around Rs 2 trillion through FY2034. The matter will be taken up further after the Centre responds.
