Supreme court grants Vodafone Idea relief in AGR dues case

The Supreme Court (SC) on Monday granted Vodafone Idea Limited (VIL) relief in the ongoing Adjusted Gross Revenue (AGR) dues case. The Court ruled that the Union government may re-examine the issue of reassessing the telco’s AGR dues if it chooses to do so, noting that the matter falls within the government’s policy domain. The Court also observed that the decision was made keeping in mind the interests of Vodafone Idea’s 20 crore (200 million) subscribers.

The government currently holds about a 49% stake in Vodafone Idea. Appearing on behalf of the government, Solicitor General Tushar Mehta stated, “The government has infused equity to the extent of 49%. There are 20 crore consumers. That was one of the reasons for which the government took this decision. The consumers would suffer; they have concerns, some due to duplicate billing, some due to over-invoicing, and that is what I have proposed.”

The matter was heard by a bench headed by Chief Justice of India (CJI) BR Gavai, who remarked, “We clarify that this is within the policy domain of the Union. There is no reason why the Union should be prevented from acting. With that view, we dispose of the writ petition.”

If the government decides to re-evaluate the AGR dues, it could represent a major breakthrough for Vodafone Idea, which has been struggling under the weight of massive liabilities. Recently, the Department of Telecommunications (DoT) had raised additional AGR demands from the company, amounts that had reportedly not been accounted for earlier.

Feeling the financial strain, Vodafone Idea approached the Supreme Court seeking relief. Following the Court’s decision on Monday, VIL’s stock initially surged nearly 10%, though gains later moderated, with the share trading around 2.39% higher than its previous Friday closing price at the time of reporting.