Supreme Court Allows Centre to Consider Vodafone Idea’s Plea Against AGR Demands

New Delhi, October 27 : The Supreme Court on Monday permitted the central government to examine telecom operator Vodafone Idea Limited’s plea challenging additional demands related to adjusted gross revenue (AGR) up to the financial year 2016–17, stating that the issue falls under the Centre’s policy domain.

As per agency report, the bench comprising Chief Justice B. R. Gavai and Justice K. Vinod Chandran passed the order while hearing Vodafone Idea’s writ petition seeking the cancellation of additional AGR-related claims raised by the Department of Telecommunications (DoT). The company argued that these claims were unsustainable since the Supreme Court’s 2019 verdict had already clarified the outstanding liabilities on AGR dues.

During the hearing, Solicitor General Tushar Mehta, representing the Centre, informed the court that the government now holds a 49 percent stake in Vodafone Idea and that nearly 200 million subscribers rely on the company’s services. He added that given these circumstances, the government was prepared to consider the issues raised by the company to ensure consumer interests are safeguarded.

The court noted that the petition sought to quash additional AGR demands for 2016–17 and requested further directions for a comprehensive reassessment of all outstanding dues. Observing the changed circumstances, including the government’s substantial equity stake and the potential impact on millions of customers, the bench said there was no impediment in allowing the Centre to reconsider the matter and take appropriate action.

The bench emphasized that the issue falls squarely within the government’s policy framework and therefore found no reason to prevent the Centre from reviewing it. Consequently, the court disposed of the writ petition with this observation.

Senior advocate Mukul Rohatgi, representing Vodafone Idea, contended that the additional demand of Rs 5,606 crore for 2016–17 raised by the DoT was arbitrary, as the dues had already been settled following the 2019 Supreme Court ruling.

AGR refers to the revenue figure used to calculate the license fee and spectrum usage charges payable by telecom operators to the government. The AGR dispute primarily arose from the inclusion of non-telecom income in the calculation, which led to massive liabilities for operators such as Vodafone Idea and Bharti Airtel.