Post by : Bianca
Haleem
The Supreme Court on Monday ruled that the Union government may carry out a comprehensive assessment and reconciliation of Vodafone Idea's Adjusted Gross Revenue (AGR) dues through the financial year 2016-17, applying the Deduction Verification Guidelines issued on February 3, 2020.
The clarification followed an oral mentioning by Vodafone Idea’s senior counsel Mukul Rohatgi and Mahesh Agarwal. The company had sought a full review of its AGR obligations, noting that an earlier order dated October 27 had referred only to “additional” AGR demands.
"This was a straightforward correction. We asked for a consolidated prayer to reassess and reconcile all AGR liabilities," Agarwal told the court.
In October, the apex court had left it to the Centre to revisit its AGR claim against Vodafone Idea and act in accordance with law. Solicitor General Tushar Mehta told the court there had been a "substantial change in circumstances" since prior AGR disputes, pointing out that the government now holds a 49% stake in the firm.
Mehta said the government’s equity holding meant its interests were closely linked with the company, which serves about 20 crore subscribers. The court observed that, given the stake and the consumer impact, the issue falls within government policy considerations.
Vodafone Idea had asked the Supreme Court for protection from the additional AGR demand and for a reassessment of historical AGR dues. This development comes after a year of litigation in which earlier requests from Vodafone Idea, Bharti Airtel and Tata Teleservices to scale down penalties or interest were dismissed as lacking merit. The court had also rejected a curative petition in September against a 2019 judgment that upheld the Department of Telecom’s move to recover roughly ₹92,000 crore from the telecom sector.
The latest clarification from the Supreme Court allows Vodafone Idea to have all its AGR liabilities examined in a single, consolidated process, offering clarity to both the company and the government.
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