New Delhi: In a major development, the Supreme Court of India on Monday allowed the Central government to reconsider the reassessment of Adjusted Gross Revenue (AGR) dues for Vodafone Idea. Following the ruling, the telecom company’s stock soared over 9 percent , hitting an intraday high of Rs 10.53 per share on the BSE.
The apex court observed that the matter lies within the Union government’s policy domain, and said there was no reason to prevent the Centre from reviewing or taking an appropriate call on the issue. This marks a significant relief for the debt-ridden operator, which has been battling massive financial liabilities for years.
AGR Case Background
The AGR dues issue dates back to a long-standing dispute between telecom operators and the Department of Telecommunications (DoT) over the definition of adjusted gross revenue. AGR is the measure used to calculate licence fees and spectrum usage charges payable by telecom companies to the government.
Vodafone Idea had challenged an additional Rs 5,606 crore in AGR dues claimed by the DoT for the period up to FY2016–17, seeking a reassessment under the Deduction Verification Guidelines issued in February 2020.
The company’s plea was previously deferred multiple times, with the latest adjournment on October 13, when the top court postponed the hearing to October 27. The Centre, which now holds nearly 50 percent equity in Vodafone Idea, had also sought time to explore a resolution, citing its direct stake in the company’s survival.
Timeline of AGR Dispute
The Supreme Court’s 2019 verdict on the AGR issue had directed telecom operators to pay dues amounting to Rs 93,520 crore. Later, in September 2020, the court allowed a 10-year repayment schedule, with 10 percent upfront payment by March 2021 and annual installments until 2031.
Although a 2021 ruling refused to revise the dues, the government later amended AGR rules to exclude non-telecom income, easing financial stress on telecom firms. Monday’s decision may now reopen the door for a fresh reassessment of Vodafone Idea’s liabilities, potentially altering its long-term financial outlook.
