New Delhi, Oct 27 (UNI) The Supreme Court today permitted the union government to review and reconcile telecom major Vodafone Idea’s pending Adjusted Gross Revenue (AGR) dues of Rs 5,606 crore for the financial year 2016-17.
A bench comprising Chief Justice of India BR Gavai and Justice K. Vinod Chandran was hearing a writ petition filed by Vodafone Idea, challenging the Department of Telecommunications’ (DoT) additional AGR demand for the same period.
The company argued that the demand was unsustainable, as the dues had already been settled by the Supreme Court’s landmark 2019 judgment on AGR liabilities. Solicitor General Tushar Mehta, appearing for the union government, informed the Court that in view of the changed circumstances, particularly the Centre acquiring a 49% equity stake in Vodafone Idea and the company serving nearly 20 crore subscribers, the government was willing to re-examine the issue.
Senior Advocate Mukul Rohatgi represented Vodafone Idea.
Recording the submission, the bench observed, “Considering that the government of India now holds 49% equity in the petitioner company and that the issue has a direct bearing on the interests of around 20 crore subscribers, we find no impediment to the union reconsidering the matter and taking an appropriate decision.”
The court clarified that its order was passed in light of the peculiar facts of the case and that the subject remains within the policy domain of the government. “We clarify that this is a matter of policy. If, in the larger public interest, the union chooses to reconcile the issue, there is no reason to prevent it from doing so,” the Bench added while disposing of the writ petition.
Earlier, a bench led by Justice JB Pardiwala had in May dismissed similar petitions by Vodafone Idea and others seeking waiver of interest and penalties on AGR dues, sharply criticising the companies for attempting to reopen a settled issue.
Vodafone Idea, in its latest plea, argued that the additional Rs 5,606 crore demand, including penalties and interest, could not be justified since the Supreme Court had already crystallised AGR liabilities in its 2019 and 2020 orders.
The 2019 judgment, which upheld the DoT’s definition of AGR to include non-core revenues, dealt a major financial blow to telecom operators, resulting in dues of over Rs 1.4 lakh crore. Subsequent review and modification pleas were dismissed in early 2020, though the court later granted a 10-year payment schedule for the liabilities.
