Supreme Court Adjourns Vodafone Idea AGR Dues Plea; Next Hearing on October 27

The Supreme Court on Monday adjourned Vodafone Idea’s (Vi) plea seeking waiver of interest, penalty, and interest on penalty on Adjusted Gross Revenue (AGR) dues for FY 2016–17. The case is now scheduled for October 27. Vi’s fresh plea challenges the DoT’s demand of ₹5,606 crore.

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Key Points:

• Fresh Plea: Vodafone Idea requested the DoT to reassess and reconcile all AGR dues following the Deduction Verification Guidelines dated February 3, 2020.

• Previous Setbacks: In 2021, the Supreme Court rejected pleas from Vi and Bharti Airtel seeking rectification of alleged errors in AGR dues calculations.

• Timeframe for Payment: In September 2020, the apex court allowed telecom operators 10 years (FY 2021–31) to pay their AGR dues, with 10% upfront by March 31, 2021, and the remainder in annual instalments.

• DoT’s Position: The Department of Telecommunications had requested staggered payments over 20 years.

• AGR Definition: Adjusted Gross Revenue includes revenue used to calculate license fees and spectrum charges. Post-2021, non-telecom income is excluded, easing operators’ financial burden.

• Government Stake: The Centre holds nearly 50% equity in Vi, making it a direct stakeholder in the company’s survival.

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Background:
The Supreme Court first addressed AGR dues in October 2019, defining operators’ liabilities and payment timelines. The 2020 order provided a structured repayment plan, aiming to balance telco survival with government revenue.