SC Tells Centre to give ‘finality’ to Vodafone Idea’s plea on ₹9,450 cr AGR dues
During the hearing, SG Mehta refrained from opposing Vodafone’s plea outright and instead urged the court for time
The Supreme Court on Friday asked the Union government to bring a sense of “finality” to Vodafone Idea’s (Vi) petition challenging an additional demand of ₹9,450 crore in Adjusted Gross Revenue (AGR) dues, even as the Centre sought more time to work out a possible solution in view of its own equity stake in the struggling telecom operator.
“There has to be some finality to these proceedings,” a bench, led by Chief Justice of India Bhushan R Gavai, told solicitor general Tushar Mehta, who appeared for the Union government.
The bench, also comprising justices K Vinod Chandran and NV Anjaria, was hearing Vi’s writ petition, filed earlier this month, that contests the Department of Telecommunications’ (DoT) fresh demand of ₹9,450 crore. The company has argued that the demand goes beyond the scope of the Supreme Court’s earlier ruling on AGR liabilities.
During the hearing, SG Mehta refrained from opposing Vodafone’s plea outright and instead urged the court for time. “I must also inform this court that the government of India has 49% equity in the company and is therefore, also a stakeholder in the issue,” he said.
Senior advocate Mukul Rohatgi, representing Vodafone Idea, did not oppose Mehta’s request, clarifying that the company’s fresh petition relates to a new set of demands and does not overlap with past AGR dues.
The court has now posted the matter for hearing next week.
Vodafone Idea moved the top court earlier this month, seeking to quash DoT’s revised demand for AGR dues. The fresh tax demands include ₹2,774 crore for FY18–19, which the company argues is based on errors such as duplication of figures, requiring reconciliation. In addition, DoT has raised AGR demands for FY17 and revised outstanding licence fees for FY19, prompting the company to request a complete recalculation of dues dating back to the pre-FY17 period.
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The total disputed demand amounts to ₹9,450 crore, of which ₹2,774 crore relates to the merged entity Vodafone Idea for FY18–19; ₹5,675 crore pertains to pre-merger liabilities of the Vodafone Group; and the remaining amount arises from other reconciliations flagged by DoT. Earlier, DoT had demanded ₹5,960 crore from Vodafone Idea, and the revised figure of ₹2,774 crore adds to the financial strain on the already debt-laden telco.
Vodafone Idea has argued that these demands exceed the Supreme Court’s 2019 judgment on AGR liabilities, which had settled the scope of dues payable. The company claims the figures are inflated, and that some amounts have been included twice.
In response, the Department of Telecommunications has maintained that the dues are not a “reassessment” of liabilities but represent “gaps” that emerged during the finalisation of financial accounts. In its affidavit, DoT said these figures were not covered by the court’s 2019 ruling and must be paid.
