The Supreme Court has granted permission to the Centre to review Vodafone Idea Ltd’s request to dismiss additional adjusted gross revenue (AGR) charges imposed by the Department of Telecommunications (DoT) for the period up to FY2016-17. Vodafone Idea argues that these supplementary charges, including approximately Rs 5,606 crore for FY2016-17, relate to years and revenues already addressed in the 2019 AGR ruling. The telecom company has requested a reassessment of the revised evaluations based on the “Deduction Verification Guidelines” issued on February 3, 2020.
Vodafone Idea has criticized the DoT’s extra demands as “arbitrary, unjust, and in opposition” to the Supreme Court’s prior decision, citing calculation duplications and a lack of correction mechanisms for previous assessments. The 2019 judgment stipulated that telecom firms must settle dues based on the expanded AGR definition, with a subsequent 2020 order allowing a ten-year repayment period. For Vodafone Idea, grappling with escalating debts and financial pressures, the Supreme Court’s approval enables the Centre to reevaluate the liabilities, potentially offering a slim chance for relief or renegotiation. Following this development, Vodafone Idea’s shares surged by up to 10% on the Bombay Stock Exchange (BSE).