Supreme Court To Hear Vodafone Idea’s AGR Dues Plea On October 13

The Supreme Court will hear Vodafone Idea’s petition on October 13 in connection with its challenge to the government’s demand for additional Adjusted Gross Revenue (AGR) dues amounting to ₹9,450 crore.

A bench comprising Chief Justice BR Gavai, Justice K Vinod Chandran, and Justice NV Anjaria is presiding over the case.

During the proceedings, Solicitor General Tushar Mehta, representing the central government, requested the court to defer the hearing. The bench granted his request and postponed the matter until October 13.

In an earlier hearing, SG Mehta informed the court that the government holds a 50% stake in Vodafone Idea, making it a key stakeholder in the case.

He stated that resolving the issue requires a viable solution and that the government may need to intervene to ensure an equitable outcome.

Vodafone Idea Challenges Additional AGR Demand

Senior advocate Mukul Rohatgi, appearing for Vodafone Idea, said telecom companies pay licence fees based on their revenue from telecom operations.

However, the dispute centres on whether the company should include income from other businesses, such as hotels or subsidiaries, in its telecom revenue.

Vodafone Idea has claimed that the government mistakenly added certain amounts twice while raising an additional AGR demand of ₹9,450 crore.

The company contends that this duplication inflated its total dues and has urged the Department of Telecommunications (DoT) to review the calculations under the Deduction Verification Guidelines submitted on February 3, 2020.

According to Vodafone Idea, the total demand includes ₹2,774 crore related to the merged entity for the financial year 2018–19, and ₹5,675 crore linked to Vodafone Group’s liabilities before the merger.

The company has requested a reconciliation of dues predating FY 2016–17 to address alleged duplication.

Responding to this, the DoT informed the court that the additional demand did not arise from reassessment or recalculation but from the finalisation of pending accounts.

The department attributed the discrepancies to inconsistencies found after the closure of financial records.

The court will now resume the hearing on 13 October, where both the government and Vodafone Idea are expected to present their final submissions. The outcome could have a significant impact on the telecom industry’s financial landscape and set a precedent for future AGR-related disputes.

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