The Supreme Court on Monday permitted the Union government to examine telecom major Vodafone Idea Ltd’s plea seeking quashing of additional adjusted gross revenue (AGR) demands raised by the Department of Telecommunications (DoT) for the financial year 2016–17. The court observed that the matter squarely falls within the policy domain of the Centre.
A Bench led by Chief Justice B.R. Gavai and Justice K. Vinod Chandran passed the order while hearing Vodafone Idea’s writ petition challenging fresh AGR-related demands. The company contended that the new claims were untenable since its liabilities had already been crystallised by the Supreme Court’s landmark 2019 judgment on AGR dues.
During the hearing, Solicitor General Tushar Mehta, representing the Centre, informed the court that the government now holds 49% equity in Vodafone Idea and that around 20 crore consumers rely on its services. He stated that in view of these circumstances, the government was open to examining the company’s grievances to protect consumer interests.
The Bench recorded the Solicitor General’s submission, noting,
“Taking into consideration the change in circumstances—that is, the Centre acquiring 49 percent equity and 20 crore customers utilising the service of the petitioner—the Union is willing to examine the issues raised by the petitioner.”
CJI Gavai observed that since the government has infused substantial equity into the company, any decision on AGR dues would have a “direct bearing on 20 crore customers.” He added,
“We see no issue in the Union reconsidering the issue and taking appropriate steps.”
Clarifying that the matter pertains to government policy, the Bench disposed of the writ petition, saying,
“There is no reason as to why the Union should be prevented from doing so.”
Senior advocate Mukul Rohatgi, appearing for Vodafone Idea, argued that the DoT’s additional demand of ₹5,606 crore for FY 2016–17 was unsustainable as the dues had already been settled in the 2019 ruling.
The adjusted gross revenue (AGR) refers to the revenue used to calculate licence fees and spectrum usage charges payable by telecom operators. The long-running dispute over AGR—particularly whether non-telecom income should be included—had imposed massive liabilities on telecom firms, with Vodafone Idea and Bharti Airtel being the most affected.
