Supreme Court Allows Centre To Review Vodafone Idea’s Plea Against DoT’s AGR Demand

The Supreme Court on Monday allowed the Centre to examine Vodafone Idea’s plea seeking quashing of the Department of Telecommunication's additional adjusted gross revenue (AGR) demands for the period up to 2016–17. The court observed that the issue falls within the policy domain of the government.

The company argued that these additional claims were unsustainable as the liabilities had already been crystallised by the apex court’s 2019 judgment on AGR dues. 

A bench comprising Chief Justice B R Gavai and Justice K Vinod Chandran passed the order following a writ petition filed by Vodafone Idea challenging fresh AGR-related demands raised by the Department of Telecommunication (DoT).

Solicitor General Tushar Mehta appearing on behalf of the government said that given these circumstances, the Centre was willing to examine the issues raised by the company to ensure consumer interests are safeguarded. He also said that the government now holds 49 percent equity in Vodafone Idea and that around 20 crore consumers depend on its services.

“The solicitor general on instructions states that taking into consideration, the change in circumstances that is the Centre acquiring 49 percent equity and 20 crore customers utilising the service of the petitioner, the Union is willing to examine the issues raised by the petitioner (company),” the bench said.

“Taking into the consideration the status of the case now, the government has infused substantial equity into the company and that it will have direct bearing on 20 crores customers, we see no issue in the Union reconsidering the issue and taking appropriate steps,” the CJI said in the order.

The bench clarified that the issue fell under the policy domain of the Union and said, “There is no reason as to why that Union should be prevented from doing, with that view of the matter, we dispose of the writ petition.” Senior advocate Mukul Rohatgi, appearing for Vodafone Idea, argued that the DoT’s additional demand of Rs 5,606 crore for FY 2016–17 was unsustainable since the dues had already been determined following the Supreme Court’s 2019 verdict.

With PTI inputs