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Informist, Friday, Sept. 19, 2025

 

--Govt to SC: Some solution required on Vodafone Idea plea in AGR case 

--SC to next hear Vodafone Idea case Sept 26 on govt's additional AGR demand 

 

NEW DELHI – The government on Friday told the Supreme Court that some solution may be required on Vodafone Idea Ltd.'s petition, seeking quashing of the Department of Telecommunications' additional adjusted gross revenue demand of INR 94.50 billion till FY19. In the light of larger public interest, the government has also infused a 49% equity into Vodafone Idea, said Solicitor General Tushar Mehta, appearing for the government. At 1213 IST, shares of Vodafone Idea traded 9.4% higher at INR 8.58 on the National Stock Exchange. 

 

The Supreme Court can also grant some indulgence in Vodafone Idea's plea in the adjusted gross revenue case, said Mehta. The facts and circumstances have changed from the earlier Vodafone Idea's petitions in the adjusted gross revenue case, Mehta added. He requested another date for hearing Vodafone Idea's plea. The bench led by Chief Justice of India B.R. Gavai orally remarked that there has to be some finality to these proceedings. However, agreeing to Mehta's request, the court placed the matter for hearing on Sept. 26.

 

Vodafone Idea said the additional demand was against the top court's orders passed in the adjusted gross revenue case. According to the petition, the Supreme Court had delivered a detailed verdict in 2020 and crystallised all the liabilities in respect of adjusted gross revenue on Vodafone Idea for the period till FY17. Despite this, the telecom department has been raising additional demand for that period stating that the dues claimed were above and beyond the adjusted gross revenue dues as finalised by the Supreme Court in 2020, Vodafone Idea said.

 

The petitioner said that the apex court had rejected the pleas of both Vodafone Idea as well as the respondent for a reconciliation and reassessment of the dues for the given period. "The claims now being made by the DoT (Department of Telecommunications), which are in excess of Rs. 5,960 crores (INR 59.60 billion), are clearly indicative of the fact that even as per the DoT, certain demands were missed out or are being revised on account of departmental assessments," the petitioner said.

 

 

According to the petition, the telecom department had in August issued another letter to Vodafone Idea regarding outstanding licence fees till FY19. A sum of about INR 94.50 billion has been computed by the department which is to be considered with reference to the scheduled payment due on Mar. 31, 2026, according to the petition. In this sum of INR 94.50 billion, the majority amount of INR 56.06 billion was for the period till FY17, which has already been specified by the top court, said the petition. The additional demand of INR 56.06 billion pertains only to licence fees dues; however, if additional spectrum usage charge demands for the period of FY17 are also considered, this amount was about INR 68 billion, the petition said. 

 

The action of the telecom department in seeking to raise additional demand despite the Supreme Court having crystallised the adjusted gross revenue dues is unfair and arbitrary, said the petitioner. There are several instances by the department of double counting of some revenue items, not allowing permissible deductions in adjusted gross revenue amount crystallised till FY17, it said. Therefore, either the demand till FY17 should be treated as completely crystalised as has been done by the Supreme Court or there ought to be a just and fair reconciliation, the petitioner said.

 

In 2019, the apex court had backed the government's view and levied adjusted gross revenue dues of INR 1.47 trillion on telecom companies such as Bharti Airtel Ltd., its subsidiary Bharti Hexacom Ltd., and Vodafone Idea Ltd. Thereafter, in 2020, the court had granted 10 years to telecom companies to clear their adjusted gross revenue dues to the Department of Telecommunications. It had asked telecom companies to pay 10% of the adjusted gross revenue dues upfront. The top court had then said that no revaluation of adjusted gross revenue dues would be allowed and any default would invite interest and penalty and be considered contempt of court. 

 

In May, the top court had rejected petitions by Bharti Airtel Ltd., Bharti Hexacom Ltd., and Vodafone Idea Ltd. seeking a waiver of adjusted gross revenue dues towards interest, penalty and penalty on interest. The top court said the writ petitions filed by these multinational companies were "misconceived". According to their petitions, Bharti Airtel and Bharti Hexacom had sought waiver of INR 347.45 billion in adjusted gross revenue-related dues, while Vodafone Idea wanted a waiver of INR 454.57 billion in dues.  End

 

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Reported by Surya Tripathi

Edited by Akul Nishant Akhoury

 

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