Vodafone Idea Challenges Agr Dues Demand

The DoT had actually after that estimated VI’s fees at Rs 58,300 crore, but the telco had actually self-assessed the charges at Rs 21,500 crore and has until now paid Rs 7,900 crore. Bharti Airtel’s dues, based on the DoT, stood at Rs 44,000 crore, compared to the driver’s very own assessment of around Rs 13,000 crore. Bharti Airtel has thus far paid Rs 18,000 crore, including a Rs 5,000-crore impromptu repayment.

AGR Dues Dispute Overview

Of the total Rs 1.47 lakh crore of AGR dues, which the telecom drivers were required to pay by January 2020 as a result of the pinnacle court’s order, virtually 75% consisted of interest, fine and interest on fine, the companies stated. The permit cost charges amounted to Rs 92,642 crore while the range use charge was Rs 55,054 crore, based on the order of September 2020.

Vodafone Idea is testing the federal government’s demand for an added 9,450 crore in AGR charges up to FY19, saying it negates prior High court judgments that completed dues until FY17. Vi asserts the DoT’s reassessment is unjustified and arbitrary, as the court had restricted any re-evaluation of AGR liabilities. The telco highlights inconsistencies and prospective double-counting in the DoT’s calculations.

Vodafone Idea’s Argument

It stated that DoT has actually further mentioned that amount as specified in the demand notification went through additional alterations as a result of departmental evaluations, CAG audit, Unique Audit, lawsuit, and so on and is further based on following interest, fine and rate of interest on fine, if appropriate.

Thereafter, the credit cycle would start from 2026 and run until 2031 with the 10% total up to be paid by March 31 every year. The pinnacle court had then claimed no revaluation of AGR dues would be permitted and any type of default would invite passion and penalty, along with contempt of court fees.

Court’s Previous Judgments

According to the application, the peak court had in a comprehensive judgment of September 1, 2020 on the computation of AGR had actually crystalised all responsibilities in regard of AGR on Vodafone through as much as 2016-17, the application said, including that this court prohibited any kind of review of the AGR fees as crystallised by it.

The telco tested the added need by the department of telecommunications (DoT) mentioning earlier Supreme Court reasonings, which had secured the amount till FY17 and refused to modify or alter the responsibility.

The SC had on September 19 last year dismissed a batch of curative applications submitted by telcos versus charge of charge and passion on charge in its September 2019 order, in addition to an adjustment in what the affected service providers asserted were arithmetical errors in the DoT’s estimations.

Vi tested the added need increased by DoT in respect of AGR, which supposedly runs counter to the apex court’s judgment of July 20, 2020, and subsequent order of September 1, 2020. It declared that the highest possible court had restricted re-assessment of the AGR fees, and, therefore, the DoT’s relocation was “unfair, unjust and approximate” in seeking additional demands.

Extra Demand In this sum of about Rs 9450 crore, the majority quantity of approximately Rs 5606 crore (as on March 31, 2025) is through upto FY 2016-17 which has currently been crystalised by the court. The extra need pertains just to accredit fee charges. If additional SUC demands for the period upto FY 2016-17 are additionally thought about, the quantity is roughly Rs 6800 crore (as on March 31, 2025), the petition mentioned.

Additional Demand Details

“The claims currently being made by the DoT, which remain in extra of Rs 5960 crore are clearly indicative of the fact that even according to the DoT, particular demands were lost out or are being modified therefore departmental evaluations,” it mentioned.

Cash-strapped Vodafone Concept (Vi) has once again relocated the High court, examining the federal government’s transfer to increase an added demand of Rs 9,450 crore towards Adjusted gross Revenue (AGR)- related dues up until FY19. The instalment of the AGR dues, consisting of the additional amount, is due by March 31, 2026.

DoT’s Calculation Discrepancies

Despite the amounts crystalised as much as FY17, DoT has actually been raising added demands, stating that the dues declared “are above and beyond, the AGR fees as settled” by the SC in July 2020 and September 2020 judgements, VI stated in its argument.

Vodafone Idea is testing the federal government’s need for an added 9,450 crore in AGR charges up to FY19, saying it negates prior Supreme Court rulings that finalized fees until FY17. The extra need relates only to accredit charge dues. The DoT had after that approximated VI’s fees at Rs 58,300 crore, however the telco had actually self-assessed the fees at Rs 21,500 crore and has actually so much paid Rs 7,900 crore. Bharti Airtel’s dues, as per the DoT, stood at Rs 44,000 crore, compared with the driver’s very own evaluation of around Rs 13,000 crore.

Mentioning that the division can not unilaterally increase succeeding extra AGR needs for the period upto FY 2016-17 without first dealing with the arithmetical/clerical mistakes which exist in the needs already raised, VI said that while the DoT goes to freedom to elevate fresh/revised needs, it was not being allowed to seek correction of evaluations made by DoT which have actually been propelled upon the it and there are several circumstances of double counting of some income things.

“DoT had on August 13 issued an additional letter to Vodafone pertaining to the exceptional license charge charges (up to FY 2018-19) covered in the halt and apparently not tabulated in the SC order of September 1, 2020. An amount of around Rs 9450 crore has been calculated by the DoT which is to be considered with recommendation to the scheduled payment due on March 31, 2026.”