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Informist, Monday, Nov. 3, 2025

 

NEW DELHI – In a relief for Vodafone Idea, the Supreme Court Monday modified its Oct. 27 order and allowed the government "to comprehensively reassess and reconcile all adjusted gross revenue dues" of the telecom company till FY17, including penalty and interests, according to lawyer involved in the case. Earlier, the top court had in its order allowed the government to reconsider only the additional adjusted gross revenue demand for the period up to FY17. 

 

At 1503 IST, the shares of Vodafone Idea were up 9.7% at INR 9.8 on the National Stock Exchange.

 

Appearing for the government, Solicitor General of India Tushar Mehta on Oct. 27 had said that due to the change in circumstances, as the Centre had acquired a 49% equity in 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 account the change in circumstances, wherein the Union of India itself has infused substantial equity in the petitioners' company and considering that the issue involved is likely to have a direct bearing on the interests of 20 crore (200 million) customers, in the peculiar facts of this case we find that there shall be no impediment in the Union of India reconsidering the issue and taking an appropriate decision in accordance with law," a bench led by Chief Justice of India B.R. Gavai had said.

 

ADDITIONAL AGR DUES
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.

 

AGR DUES 
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 Akul Nishant Akhoury

 

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