Supreme Court Allows Centre To Reconsider Demand For AGR Dues From Vodafone

The bench comprising Chief Justice of India BR Gavai and Justice K Vinod Chandran was hearing a writ petition filed by Vodafone India challenging the Department of Telecommunications' additional demand towards AGR dues of 2016-17 period.

According to Vodafone, the additional demand is unsustainable as the liabilities were already crystallised by the Supreme Court's 2019 judgment.

Solicitor General Tushar Mehta, appearing for the Union, today informed the bench that since the Union has infused 49% equity in the company and there were 20 crore customers utilising the services of Vodafone Idea, the Union has agreed to reconsider the issues on reassessment raised by Vodafone. 

Sr Advocate Mukul Rohatgi appeared for Vodafone India. 

The bench, considering the above, recorded the following in its order : 

"The SG on instructions states that taking into consideration the change in circumstances, that is the Government of India acquiring 49 % equity, and the larger aspect that  20 crores customers utilising the service of the petitioner, the Union is willing to examine the issues raised by the petitioner. It is further submitted that the government has agreed to reconsider it and take an appropriate decision, if the Court so permits."

"Taking into consideration the status of the case now, the government has infused substantial equity into the company, and further, that the issue involved is likely to have a direct bearing on the interests of  20 crores customers, we see no issue in the Union reconsidering the issue and taking an appropriate decision"  the Court added. 

The Court further clarified that the order was passed in light of the peculiar facts of the case and that the subject matter pre-exists in the policy decision category of the Union. 

"We clarify that this is a matter within the policy domain of the Union. If the Union, in the peculiar facts and circumstances, the Union, in the larger interest, reconciles the issue, 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."

"We clarify that the order is passed only in the peculiar facts and circumstances of the case" 

Previously, the court asked if it could entertain a fresh petition filed by Vodafone India over the issue of Adjusted Gross Revenue dues, ignoring the Court's earlier order, which dismissed a previous petition filed by the company on the same issue.

In May, a bench comprising Justice JB Pardiwala and Justice R Mahadevan had dismissed the writ petitions filed by Vodafone and two other companies seeking waiver of interest, penalty, and interest on penalty components on their adjusted gross revenue (AGR) dues. Then, the bench led by Justice Pardiwala had made scathing remarks against the company for filing the petition despite the conclusion of the AGR litigation with the dismissal of curative petitions.

According to the latest petition, the DoT has raised a demand of ₹5,606 crore, which falls under the 2016-17 period. Penalty and interest are also added to the demand. The company contended that the Supreme Court had crystallised the liabilities in 2020, and hence the matter cannot be reopened with additional demand.

The prayer in the petition is - “Issue an appropriate writ, order or direction quashing the demands issued by the respondent (Department of Telecom) raising additional AGR demands for the period till FY 2016-17 and direct the respondent to comprehensively re-assess and reconcile all AGR dues for the period till FY 2016-17.”

The October 2019, the judgment of the Supreme Court, which upheld the Department of Telecommunications' definition of Adjusted Gross Revenue (AGR), significantly broadened the scope to include non-core revenues.

This ruling dealt a major financial blow to telecom operators, who were ordered to pay over ₹1.4 lakh crore in dues, including penalties and interest.

Companies like Vodafone Idea and Bharti Airtel, already under financial strain, faced existential threats due to the massive liabilities.

Review and modification petitions filed by the telecom firms were dismissed by the Court in early 2020, reaffirming the dues. In September 2020, the Court granted a 10-year timeline for payment of the dues, with an annual instalment plan.

Case Details : VODAFONE IDEA LTD. AND ANR. Versus UNION OF INDIA| W.P.(C) No. 882/2025