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Informist, Monday, Oct. 13, 2025

 

--SC defers Vodafone Idea plea against govt's additional AGR demand to Oct 27

 

NEW DELHI – The Supreme Court Monday again deferred till Oct. 27 Vodafone Idea Ltd.'s petition, seeking quashing of the Department of Telecommunications' additional adjusted gross revenue demand of INR 94.50 billion till FY19, on a request from Solicitor General of India Tushar Mehta, appearing for the government. Vodafone Idea also filed an application in the Supreme Court seeking exemption from the payment of interest, penalty, and interest on penalty on the principal amounts of adjusted gross revenue dues. Last month, the government had told the apex court that some solution may be required on Vodafone Idea's petition.

 

This was the fourth time a hearing was scheduled on Vodafone Idea's plea. However, the matter has been adjourned on all four occasions after requests from Mehta. 

 

Vodafone Idea said the additional demand was against the top court's orders passed in the adjusted gross revenue case. According to the petition, the Supreme Court had delivered a detailed verdict in 2020 and crystallised all the liabilities in respect of adjusted gross revenue on Vodafone Idea for the period till FY17. Despite this, the telecom department has been raising additional demand for that period stating that the dues claimed were above and beyond the adjusted gross revenue dues as finalised by the Supreme Court in 2020, Vodafone Idea said.

 

According to the petition, the telecom department had in August issued a letter to Vodafone Idea regarding outstanding licence fees till FY19. A sum of about INR 94.50 billion has been computed by the department which is to be considered with reference to the scheduled payment due on Mar. 31, 2026, according to the petition. In this sum of INR 94.50 billion, the majority amount of INR 56.06 billion was for the period till FY17, which has already been specified by the top court, said the petition.

 

In its application, the petitioner said that it had previously objected to the penalty on the ground that non-payment of adjusted gross revenue dues was bonafide. There was a conflict of judicial views on the point as to whether certain heads of income such as depreciation, foreign exchange fluctuations, rental income, were part of the income for the purposes of computation of adjusted gross revenue or not, said the petitioner. In May, the top court had rejected a similar petition by Vodafone Idea seeking a waiver of INR 454.57 billion adjusted gross revenue dues towards interest, penalty and penalty on interest. However, the bench of Justices J.B. Pardiwala and R. Mahadevan clarified that "if the government wants to help you (the petitioners), we are not coming in your way".

 

In 2019, the apex court had backed the government's view and levied adjusted gross revenue dues of INR 1.47 trillion on telecom companies such as Bharti Airtel Ltd., its subsidiary Bharti Hexacom Ltd., and Vodafone Idea Ltd. Thereafter, in 2020, the court had granted 10 years to telecom companies to clear their adjusted gross revenue dues to the Department of Telecommunications. It had asked telecom companies to pay 10% of the adjusted gross revenue dues upfront. The top court had then said that no revaluation of adjusted gross revenue dues would be allowed and any default would invite interest and penalty and be considered contempt of court.

 

At 1235 IST, shares of Vodafone Idea were down 2.1% at INR 8.85 on the National Stock Exchange.  End

 

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Reported by Surya Tripathi

Edited by Deepshikha Bhardwaj

 

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