New Delhi: In a major reprieve for Vodafone Idea, the Supreme Court on Monday permitted the Union government to reconsider the telecom company’s plea for relaxation on its Adjusted Gross Revenue (AGR) dues amounting to Rs 9,450 crore. The court observed that the issue falls within the Centre’s policy jurisdiction, paving the way for a potential review of the company’s financial liabilities.
The AGR represents the revenue-sharing mechanism under which telecom operators are required to pay a portion of their earnings to the government as licence fees and spectrum usage charges.
The long-standing dispute over AGR has centred on what constitutes “gross revenue.” Telecom companies maintained that only income from core telecom services should be included, while the government insisted that non-telecom revenues—such as rent, interest, and dividends should also be factored in.
In 2019, the Supreme Court upheld the government’s broader definition of AGR, resulting in demands of around Rs 92,000 crore from telecom operators. The ruling dealt a major financial setback to industry players including Vodafone Idea and Bharti Airtel, both of which faced severe liquidity challenges in the aftermath.
Vodafone Idea’s latest petition challenged a fresh demand of Rs 9,450 crore raised by the Department of Telecommunications (DoT). The company argued that much of the amount pertains to the pre-2017 period, which had already been settled by the Supreme Court in its 2020 judgment that confirmed payment schedules and total liabilities.
By allowing the Centre to revisit the demand, the apex court has effectively opened the door for a possible policy-based review or recalibration of Vodafone Idea’s pending dues. Industry observers say the decision could offer significant relief to the financially stressed telecom operator, which continues to grapple with mounting debt and efforts to stay competitive in India’s consolidated telecom market.
