SC allows govt to rethink Vi’s AGR dues

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

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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.

Vi described the decision that allowed the government to address the company’s grievances as a “positive development”, saying it would work with the government to resolve the AGR issues.“... This is an impetus to the Digital India vision and ambition of our Honourable Prime Minister...” it said in a statement. Vi'’s stock surged as much as 9.3 per cent during the day to a 52-week high of %10.52 per share, the biggest intraday rise since October7. The stock later pared gains and closed at $10.02 on the NSE, up 4.16 per cent. The Nifty 50 gained 0.66 per cent.

Legal and industry experts said the ruling marks a turning point for both the company and India’s telecom sector, offering the government greater flexibility to address financial stress in the industry while maintaining regulatory credibility and market stability.