SC defers Vodafone Idea plea against Rs 9,450 Cr AGR demand again

New Delhi, Oct 13 (UNI) The Supreme Court today once again deferred the hearing of telecom operator Vodafone Idea Ltd’s petition seeking to quash a fresh Rs 9,450 crore adjusted gross revenue (AGR) demand raised by the Department of Telecommunications (DoT).

A bench comprising Chief Justice of India BR Gavai and Justice K. Vinod Chandran adjourned the matter after similar postponements in the previous hearings on September 26 and October 7.

Last week, the Solicitor General Tushar Mehta had sought time till October 13, citing the Centre’s ongoing efforts to find a solution.

Earlier, the Central government had informed the apex court that in the larger public interest, it had already infused 49% equity into Vodafone Idea and was exploring a viable resolution. “Some solution may be required, subject to this court’s approval,” Mehta had said.

In response, the bench comprising CJI Gavai, Justice Chandran, and Justice NV Anjaria had observed that there must be “some finality” to the AGR proceedings.

Vodafone Idea’s petition contends that the Rs 9,450 crore demand includes Rs 5,675 crore relating to pre-FY17 dues that were already settled by the Supreme Court’s March 18, 2020 judgment, which had ruled that no reassessment or self-assessment of such dues was permissible.

The company further stated that Rs 2,774 crore pertains to the post-merger entity (FY18–19), and alleges duplication and incorrect calculation in DoT’s revised assessment.

The telecom operator argued that the fresh AGR demand exceeds the scope of the 2020 ruling, which had already finalised liabilities for the period up to FY16-17. It urged the court to quash the new demand and order a reconciliation of figures.

Highlighting the financial strain caused by these dues, Vodafone Idea said the continued enforcement of such demands “threatens the very existence” of the company and the livelihood of over 18,000 employees.

The operator, which currently serves around 198 million subscribers, is also in the midst of fundraising efforts to expand its 4G network and roll out 5G services.

The company noted that DoT’s recent revision of licence fee obligations for Vodafone Idea Ltd and the erstwhile Idea Cellular has led to further disputes over FY18-19 liabilities, allegedly including certain amounts twice.

Once the government’s four-year moratorium on AGR payments ends in March 2026, Vodafone Idea will begin paying Rs 16,428 crore in instalments towards AGR dues, alongside Rs 2,641 crore for spectrum payments by June 2026.

Its total outstanding liabilities, including deferred spectrum, interest, and penalties, are estimated to be around Rs 2 trillion through FY2034.

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