SC allows govt to review Vodafone Idea AGR dues

In a major relief for Vodafone Idea (Vi), the Supreme Court on Monday allowed the Union government to review and reconsider the additional demand in adjusted gross revenue (AGR) dues against the financially distressed telecom operator, marking what could be a fresh breath of life for the beleaguered company struggling to stay afloat in India’s hyper-competitive telecom sector.

- Utkarsh Anand

The company currently faces an additional demand of ₹9,450 crore in AGR dues, including the dues for the period up to financial year 2016-17, which the company pressed for reassessment in the light of the 2020 Deduction Verification Guidelines.

‘A bench comprising Chief Justice of India Bhushan R Gavai and Justice K Vinod Chandran permitted the government to revisit its earlier demand, observing that the decision to reexamine the issue was a matter within the Union's policy domain, and that the court saw “no impediment” in the government taking an appropriate decision under law given the peculiar facts of the case.

“The Union is willing to examine the issues further. Taking into consideration that the government has acquired stake (in the company) and the issue is likely to have an impact on 20 crore (200 million) consumers, we see no impediment in the Union government reconsidering the issue and taking an appropriate decision under the law,” the bench said in its order. It emphasised that the permission to review was being granted in the larger public interest and “in the peculiar facts and circumstances of the case.”