Supreme Court Allows Government to Reconsider All Vodafone Idea AGR Dues
In a significant relief for Vodafone Idea, the Supreme Court has clarified that the Centre can reconsider and reconcile all of the telecom company’s pending Adjusted Gross Revenue (AGR) dues, not just those for the 2016-17 financial year.
Key Takeaways
- Vodafone Idea gets major relief on AGR dues worth over ₹83,500 crore
- Government can now reconsider all pending dues, not just 2016-17 amounts
- Decision affects 20 crore customers and government’s 49% equity stake
Court Clarifies Earlier Order
The Supreme Court bench comprising Chief Justice B R Gavai and Justice K Vinod Chandran corrected its October 27 order, which had limited the relief to additional AGR demands for 2016-17. Vodafone Idea’s counsel successfully argued that their petition sought relief against both additional AGR dues and reassessment of all AGR liabilities.
“There’s an error in Para 6 where the order said we only asked for relief against additional AGR dues. We had made a composite prayer against additional AGR and the reassessment of all AGR dues,” the company’s lawyer stated.
Financial Implications
The telecom firm faces additional AGR dues of approximately ₹9,450 crore, with total AGR demands exceeding ₹83,500 crore as of March 2025. The court’s clarification now enables the government to provide comprehensive relief on all outstanding AGR dues.
Government’s Stance
The solicitor general informed the court that considering the changed circumstances – including the Centre acquiring 49% equity in Vodafone Idea and the service affecting 20 crore customers – the government was willing to examine the issues raised by the company.
Chief Justice Gavai noted: “Taking into consideration the status of the case now – the government has infused substantial equity into the company and that it will have direct bearing on 20 crore customers – we see no issue in the Union reconsidering the issue and taking appropriate steps.”
Background of AGR Dispute
The case originated from Vodafone Idea’s writ petition challenging fresh AGR-related demands from the Department of Telecommunications. The company argued that additional claims were unsustainable since liabilities had been crystallized by the Supreme Court’s 2019 AGR judgment.
The AGR dispute, particularly regarding the inclusion of non-telecom income, has created massive liabilities for telecom operators, with Vodafone Idea being among the most affected.
Earlier this year, the Supreme Court had refused to review its 2021 order rejecting telecom companies’ pleas for rectification of alleged calculation errors in AGR dues.
