In a move that could ease the financial pressure on India’s biggest telecom player, the Supreme Court said the government can rethink its claim of Rs 9,450 crore in Adjusted Gross Revenue (AGR) dues against Vodafone Idea. The court noted that the issue falls under the Union’s policy domain and that any decision should consider the interests of the company’s 20 million customers.
The ruling follows the 2019 high‑court verdict that upheld the government’s definition of AGR and allowed the state to collect about Rs 92,000 crore from major operators, a setback for companies such as Vodafone and Bharti Airtel. Vodafone’s latest petition argued that a large part of the new demand—borne by the Department of Telecommunications—covers a period before 2017, which the Supreme Court had already resolved.
The Chief Solicitor General, Tushar Mehta, told the court that the circumstances had changed dramatically because the government has invested equity in Vodafone. “The government is acting in the public interest,” he said. “With 20 million consumers relying on the service, the company’s failure could harm everyone.”
The court’s order cleared the way for the Centre to review the AGR calculation. “The government is ready to reconsider and make an appropriate decision if the court allows it,” the apex court said, adding that there was no legal obstacle to the government’s policy-making.
AGR is a fee‑sharing rule that requires telecom operators to give a share of their revenue to the state for licensing and spectrum costs. Telecom firms have long argued that AGR should cover only core services, while the Ministry insists that it should also include non‑telecom activities they offer.
This decision is a significant relief for Vodafone Idea, a loss‑making operator, and may influence how India’s telecom industry will regulate revenue sharing and spectrum usage in the future.
Source: ianslive
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