Vodafone Idea (Vi): AGR Dues Dispute in Supreme Court

Supreme Court examines Vodafone Idea's appeal against DoT's ₹9,450 crore AGR demand. Vi contests additional dues. Government seeks solution amidst 49% stake in Vi. Court urges finality.

The leading court then published the issue for additional hearing on September 26. Vi has affirmed that regardless of the leading court having actually crystallised all the liabilities in respect of AGR on Vi till FY17, the department has actually been increasing extra need for that period.

SC Intervention in Vi’s Financial Woes

The Supreme Court has advised the government to solve Vodafone Concept’s economic concerns, consenting to examine the telecom company’s appeal against the DoT’s additional 9,450 crore AGR demand. The federal government, holding a 49% risk in Vi, looks for more time to find an option.

The SC had on September 19 last year dismissed a set of curative applications submitted by telcos versus charge of fine and interest on fine in its September 2019 order, in addition to a modification in what the damaged providers asserted were arithmetical errors in the DoT’s estimations.

In this sum, around 5,606 crore (as on March 31, 2025) is through as much as FY17, which has currently been crystalised by the court, the firm claimed. The added need pertains only to certify charge charges. But if additional SUC needs for the period as much as FY17 are also taken into consideration, the quantity is about 6,800 crore (as on March 31, 2025), the request stated.

DoT’s Additional AGR Demand

The High Court on Friday asked the federal government to bring “finality” to Vodafone Concept’s (Vi) problem, even as it agreed to listen to the cash-strapped telecom firm’s petition seeking quashing of the division of trelecommunications’ relocate to elevate an extra need of 9,450 crore towards adjusted gross income (AGR) related fees until FY19.

Of the total 1.47 lakh crore of AGR charges, which the telecommunications drivers were called for to pay by January 2020 as an outcome of the apex court’s order, nearly 75% made up interest, charge and interest on fine, the firms said.

“The cases currently being made by the DoT, which remain in extra of 5,960 crore are clearly indicative of the fact that even based on the DoT, particular demands were lost out or are being changed on account of departmental analyses,” it stated.

Government’s Stake and Solution

“I should inform this court that the federal government of India has 49% equity in the firm and is consequently, also a stakeholder in the issue,” the SG claimed, adding that currently the conditions have transformed and the parties wish to discover an option at the earliest, for that reason, asked for another day to listen to the Vi petition.

“DoT had on August 13 released another letter to Vodafone pertaining to the superior certificate fee dues (as much as 2018-19) covered in the postponement and apparently not tabulated in the SC order of September 1, 2020. A sum of about 9,450 crore has actually been computed by the DoT which is to be taken into consideration with reference to the scheduled repayment due on March 31, 2026.”

Vi Contests AGR Re-assessment

The telco said the additional demand elevated by DoT in respect of AGR runs counter to the apex court’s judgment of July 20, 2020, and a succeeding order of September 1, 2020. It asserted that the highest court had actually prohibited re-assessment of the AGR fees, and, consequently, the DoT’s action was “unjust, unfair and arbitrary.”

In this sum, around 5,606 crore (as on March 31, 2025) is for the duration up to FY17, which has already been crystalised by the court, the company said. The extra demand relates only to certify charge charges. If additional SUC needs for the period up to FY17 are also thought about, the quantity is around 6,800 crore (as on March 31, 2025), the petition mentioned.