SC Defers Hearing on Vodafone Idea Plea Against Additional AGR Demand to October 27

The Supreme Court on Monday deferred to October 27 the hearing on Vodafone Idea Ltd.’s plea seeking to quash the Department of Telecommunications’ (DoT) additional adjusted gross revenue (AGR) demand for 2016–17.

A bench of Chief Justice BR Gavai and Justice K Vinod Chandran postponed the matter after Solicitor General Tushar Mehta, appearing for the Centre, requested that the hearing be listed after the Diwali vacation.

Vodafone Idea has challenged the DoT’s demand of ₹5,606 crore and sought a direction for a comprehensive reassessment of all AGR dues up to 2025-2016 and 2016-17 in line with the Deduction Verification Guidelines issued on February 3, 2020.

Mehta told the court that the government holds nearly 50% equity in Vodafone Idea, making it a direct stakeholder in the operator’s survival, and added that discussions were underway to arrive at a resolution.

Earlier this year, the apex court had rejected pleas by Vodafone Idea and Bharti Airtel seeking rectification of alleged errors in the calculation of AGR dues. In its 2019 verdict, the Supreme Court upheld the DoT’s demand on AGR dues as final and barred any reassessment.
In 2020, the court gave telecom operators 10 years to clear ₹93,520 crore in AGR-related dues, directing them to pay 10% upfront by March 31, 2021, and the remainder in annual instalments till March 31, 2031.
AGR refers to the revenue used to calculate licence fees and spectrum charges owed by telecom operators. In 2021, the definition was relaxed to exclude non-telecom income, easing the financial burden on the sector.