Supreme Court Clears AGR Dues Reassessment for Vodafone Idea

The Supreme Court on Monday clarified that the Union government can comprehensively assess and reconcile all Adjusted Gross Revenue (AGR) dues of Vodafone Idea (VI) up to the financial year 2016-17, following the Deduction Verification Guidelines of February 3, 2020.

The clarification came during an oral mentioning by Vodafone Idea’s senior advocates, Mukul Rohatgi and Mahesh Agarwal. The telecom major had sought a comprehensive review of all AGR dues, noting that an earlier court order from October 27 had inadvertently referred only to “additional” AGR demands.

“It was only a simple correction. We had sought a composite prayer to reassess and reconcile all the AGR dues,” Agarwal said.

Earlier, in October, the apex court had left it to the Centre to reconsider its AGR demand from Vodafone Idea and decide in accordance with the law. The government, represented by Solicitor General Tushar Mehta, highlighted a “huge change in circumstances” since previous AGR litigation, pointing out that it now held a 49% equity stake in the company.

“This makes the government’s interest intertwined with the company’s, which affects 20 crore subscribers,” Mehta had said. The court noted that the matter falls within the government’s policy domain, given its significant stake and the impact on millions of consumers.

Vodafone Idea had approached the Supreme Court seeking relief against both the additional AGR demand and a reassessment of all past AGR dues. This follows a year of litigation where earlier pleas from Vodafone Idea, Bharti Airtel, and Tata Teleservices to reduce penalties or interest were rejected, citing financial constraints. The apex court had labeled those petitions as “misconceived” and dismissed a curative petition in September last year against a 2019 judgment upholding the Department of Telecom’s move to recover roughly ₹92,000 crore from the telecom sector.

The latest clarification from the Supreme Court ensures that Vodafone Idea can now have all its AGR liabilities reassessed in a single, consolidated review, providing clarity to both the company and the government.