SC Allows Government To Reassess Vodafone AGR Dues
The Supreme Court has permitted the Centre to reconsider the Adjusted Gross Revenue (AGR) dues of Vodafone Idea Ltd., noting that the matter falls under the Union government’s policy framework. The order comes after Vodafone Idea challenged a fresh demand of ₹9,450 crore raised by the Department of Telecommunications (DoT).
Case Background
AGR is the revenue-sharing system through which telecom operators pay licence and spectrum usage fees to the government. In 2019, the Supreme Court upheld the DoT’s wider interpretation of AGR, which resulted in a cumulative demand exceeding ₹92,000 crore from various operators. Vodafone Idea’s present case concerns an additional demand for a period already contested.
Court’s Observation
The bench highlighted that the government’s 49% equity stake in Vodafone Idea, coupled with the company’s subscriber base of nearly 200 million, makes the issue one of public interest. The court clarified that the decision to permit reassessment was based on specific facts and should not be viewed as a precedent for other cases.
