SC allows govt to reconsider Vi's AGR dues

This may open doors for other telcos to seek relief, say legal experts

- BHAVINI MISHRA & GULVEEN AULAKH

The Supreme Court on Monday allowed the Centre to reassess Vodafone Idea's (Vi's) adjusted gross revenue (AGR) dues, holding that any relief to the struggling telecom operator lay within the government's policy domain.

A Bench comprising Chief Justice of India B R Gavai and Justices K Vinod Chandran and Vipul M Pancholi accepted the government's submission that the move was driven by consumer interest and the Centre’s substantial equity in India’s third-largest telecom provider.

Solicitor General Tushar Mehta, appearing for the government, told the court that the Centre now holds a 49 per cent stake in Vi. The review, he said, had been prompted by concerns about the firm’s large user base. As of September 2025, Vi had 202.8 million subscribers, according to data from the Trai released on Monday. “We clarify that this falls within the Union’s policy domain, and there is no reason to prevent the government from proceeding accordingly,” observed the Bench, disposing of the matter.

Senior advocate Mukul Rohatgi, representing Vi, expressed satisfaction with the government's approach.

Taking note of the government's equity infusion and the potential impact on millions of users, the court said: "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 crore customers, we see no issue in the Union reconsidering the issue and taking an appropriate decision." The Bench stressed that its order was confined to the specific facts of the case, particularly the central government's stake in the company and its stated aim of protecting consumer interests. A detailed order is awaited.