The Supreme Court has provided major relief to Vodafone Idea in the Adjusted Gross Revenue (AGR) case by allowing the Centre to reconsider and potentially relax the company’s AGR dues, which currently amount to ₹9,450 crore according to the latest petition.
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The Supreme Court Bench led by Chief Justice BR Gavai disposed of Vodafone Idea’s plea, stating that any relief regarding AGR dues now falls squarely within the government’s policy domain and not the court’s purview.
The government, which now owns 49% of Vodafone Idea, said the court that worries for the more than 20 crore Indian customers who would be impacted if Vodafone Idea experienced financial difficulties deserved a reevaluation.
The Supreme Court’s decision means Vodafone Idea can now negotiate directly with the government to potentially recalibrate its dues or seek extended payment timelines, though it does not amount to an automatic waiver.
Vodafone Idea welcome the ruling of the Supreme Court as a major turning point in telecom sector and assured its intent to resolve the issue positively with the government.
The company’s shares surged over 9% following the news, reflecting renewed investor optimism.
Vodafone Idea previously sought waivers and recalculation after the Department of Telecommunications raised fresh demands, and the Supreme Court had locked its liabilities up to 2016-17 at ₹58,254 crore, which has now climbed to ₹83,400 crore.
The company argued that, since the principal amount is not finalized, penalties and interest should not apply. The Supreme Court’s ruling is limited to Vodafone Idea and is primarily driven by the government’s investment in the business and consumer protection.
As the Centre reevaluates the financial burden and finds out necessary remedies for Vodafone Idea’s survival, some positive news in this regard is highly anticipated.
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