New Delhi: The Supreme Court of India on Monday adjourned the hearing in a petition filed by Vodafone Idea seeking relief from additional Adjusted Gross Revenue (AGR) demands raised by the Department of Telecommunications (DoT) for periods up to FY 2016-17. The matter has been rescheduled for October 13 after a request by Solicitor General Tushar Mehta, representing the Centre.

A bench comprising Chief Justice of India BR Gavai and Justice K Vinod Chandran adjourned the matter following Mehta’s submission that the hearing be deferred.

Vodafone Idea’s plea against additional AGR demands

Vodafone Idea’s plea argued that the additional AGR demands were unjust, unfair, and arbitrary, given that the Supreme Court had already settled AGR dues for the pre-2016-17 period in its previous rulings. The company sought directions to:

  • Quash the additional demand for AGR dues.

  • Direct the telecom department to comprehensively reassess and reconcile all AGR dues based on the Deduction Verification Guidelines issued on February 3, 2020.

    • The petition claimed that errors in computation had caused duplication of entries, with certain amounts being added more than once. It also highlighted that while DoT can raise additional demands, Vodafone Idea is not being permitted to seek corrections for assessments already made.

    Background of AGR dues litigation

    The AGR dispute has been ongoing since a Supreme Court ruling in October 2019, which directed telecom operators to pay dues to the Central government. In September 2020, the apex court allowed telecom companies a 10-year period to settle pending AGR dues, mandating 10 per cent payment annually, with the first instalment due by March 31, 2021.

    In July 2021, the Supreme Court dismissed pleas by major telecom players, including Bharti Airtel and Vodafone Idea, seeking corrections of errors in AGR calculations as per the 2019 judgement. Vodafone Idea’s current plea seeks a fresh review, citing computational errors and the need for a comprehensive reassessment.

    Government stance

    The Centre, represented by Solicitor General Tushar Mehta, requested the adjournment of the hearing. While the government maintains that additional demands can be raised if justified, it has yet to comment on Vodafone Idea’s claims of duplications and unfair assessments.

    The adjournment provides additional time for both sides to present detailed arguments regarding computation errors, reassessment procedures, and compliance with the Deduction Verification Guidelines.

    Conclusion

    The Supreme Court’s rescheduling to October 13 underscores the continuing complexity of the AGR dispute, which remains a significant financial and regulatory challenge for telecom companies in India. Vodafone Idea continues to seek relief while maintaining that prior assessments were flawed and need correction. The outcome of the hearing will have implications for telecom operators’ liabilities and the enforcement of AGR dues across the sector.