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Informist, Monday, Oct. 27, 2025

 

--Govt to SC: Willing to reconsider Vodafone Idea's request in AGR case 

--CONTEXT: SC hearing Vodafone Idea plea against govt's additional AGR demand

--SC on Vodafone Idea plea:See no impediment in govt reconsidering AGR issue

--SC disposes of Vodafone Idea's plea, allows govt to reconsider AGR issue 

 

NEW DELHI – In relief to Vodafone Idea Ltd., the Supreme Court Monday allowed the government to reconsider the issue of the Department of Telecommunications' additional adjusted gross revenue demand of INR 94.50 billion till FY19 against the telecom operator and take appropriate steps. The government will also reconsider Vodafone Idea's request to seek exemption from the payment of interest, penalty, and interest on penalty on the principal amounts of adjusted gross revenue dues, the top court noted, disposing of the telecom operator's petition.

 

Appearing for the government, Solicitor General of India Tushar Mehta had said that due to the change in circumstances, as the Centre had acquired 49% equity of Vodafone Idea and almost 200 million customers were using the telecom operator's service, the Union was willing to examine the issues raised by the petitioner. "Taking into the 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 crores (200 million) customers, we see no issue in the Union reconsidering the issue and taking appropriate steps," said a bench led by Chief Justice of India B.R. Gavai.

 

At 1159 IST, shares of Vodafone Idea Ltd. were up 9.5% at INR 10.53 on the National Stock Exchange.  

 

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, according to the petition.

 

In its application, the petitioner said that it had previously objected to the penalty on the grounds that non-payment of adjusted gross revenue dues was bonafide. There was a conflict of judicial views on the point of 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, the petitioner said. In May, the top court had rejected a similar petition by Vodafone Idea, seeking a waiver of INR 454.57 billion of 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.  End

 

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

 

Reported by Surya Tripathi

Edited by Avishek Dutta

 

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