Supreme Court Allows Centre to Reassess Vodafone Idea’s AGR Dues, Shares Surge 9%

In a major relief for Vodafone Idea, the Supreme Court on Monday permitted the Union government to revisit the issue of reassessing the telecom operator’s adjusted gross revenue (AGR) dues, noting that the decision falls within the Centre’s policy domain. A bench led by Chief Justice of India B.R. Gavai passed the order after Solicitor General Tushar Mehta informed the court that the government now holds 49% equity in Vodafone Idea and took the step in the interest of over 200 million subscribers.

Clarifying the scope of its direction, the Chief Justice said the order was limited to the specific facts of this case, emphasizing that it was within the policy discretion of the Union government. The court disposed of the writ petition, observing that the decision considered the Centre’s equity infusion and the welfare of millions of consumers. Following the verdict, Vodafone Idea’s stock surged nearly 9% to hit a 52-week high of ₹10.57 on the NSE.

The case stems from Vodafone Idea’s plea challenging the Department of Telecommunications’ (DoT) additional AGR demand of ₹5,606 crore for the period up to FY2016-17. AGR represents the income used by the government to calculate licence fees and spectrum usage charges payable by telecom operators. The matter has been pending for years, with the government earlier granted multiple adjournments while working on a resolution given its nearly 50% stake in the company.

Pic Courtesy: google/ images are subject to copyright