The Supreme Court on Monday deferred to October 13 the hearing on a plea filed by Vodafone Idea Ltd (VIL) seeking to quash additional adjusted gross revenue (AGR) demands raised by the Department of Telecommunications (DoT) for the financial year 2016–17.
A bench comprising Chief Justice B R Gavai and Justice K Vinod Chandran was scheduled to hear the plea but agreed to defer it after Solicitor General Tushar Mehta, representing the Centre, sought more time. The request was supported by senior advocate Mukul Rohatgi, appearing for Vodafone Idea. They urged that the matter be taken up before the Diwali vacation, which the bench allowed.
The case was previously adjourned on September 26 to October 6.
Vodafone Idea has challenged the DoT’s fresh demand of ₹5,606 crore related to AGR dues for FY 2016–17. The company has sought a direction to the DoT to “comprehensively re-assess and reconcile all AGR dues for the period up to FY 2016-17 following the ‘Deduction Verification Guidelines’ dated February 3, 2020.”
Earlier, the government had informed the court that discussions were underway to find a resolution with the company. The Solicitor General told the bench that the Centre held nearly 50% equity in Vodafone Idea, making it a direct stakeholder in the operator’s financial survival.
“Some solution may have to be found out, subject to your lordship’s approval. If it can be kept next week, we can think of some solution,” Mehta submitted.
The fresh plea comes against the backdrop of earlier setbacks for telecom operators. In 2021, the Supreme Court dismissed petitions by Vodafone Idea and Bharti Airtel seeking rectification of alleged errors in the calculation of AGR dues. The court rejected the review petitions against its July 23, 2021 order, in which it refused to allow any corrections for what the companies described as arithmetical mistakes and duplication of entries.
In September 2020, the court gave telecom operators a 10-year timeline to clear ₹93,520 crore in AGR-related dues. Operators were directed to pay 10% of the total dues by March 31, 2021, with the remaining amount to be paid in annual instalments from April 1, 2021, to March 31, 2031.
The court had held the DoT’s demand as final, making it clear that no reassessment or dispute would be entertained. This followed the landmark October 2019 verdict on the definition of AGR, which included both telecom and non-telecom income.
In 2021, the rules were amended to exclude non-telecom income from AGR, reducing the financial burden on operators going forward.
