Supreme Court to Revisit Vodafone Idea's AGR Dues Case Amidst Government Stake
The Supreme Court will hear Vodafone Idea's plea to quash Rs 5,606 crore AGR demands from DoT for 2016-17. The government holds 50% equity in the company and seeks a resolution. Previous court orders fixed a 10-year timeline for telecom companies to clear AGR dues totaling Rs 93,520 crore.
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The Supreme Court is set to deliberate on a petition filed by Vodafone Idea Limited (VIL), challenging new demands for Adjusted Gross Revenue (AGR) dues amounting to Rs 5,606 crore for the financial year 2016-17. The hearing, originally scheduled for September 26, was postponed at the behest of Solicitor General Tushar Mehta, representing the Center.
As a part-owner, holding nearly 50% equity in VIL, the government anticipates a resolution essential for the operator's longevity. VIL has called for a comprehensive reassessment of AGR dues up to FY 2016-17 under the revised Deduction Verification Guidelines of 2020.
Previously, the apex court had maintained a firm stance on AGR calculations, dismissing revision pleas from telecom firms including VIL. It tabled a 10-year timeline extending to March 31, 2031, for dues clearance. AGR dictates the telecom revenue metric for levying government licensing fees.
(With inputs from agencies.)
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