Vodafone-Idea AGR Case: Hearing of the case completed, know what update came from the court?

News Topical, Digital Desk : Vodafone-Idea AGR Case: The Supreme Court has adjourned the hearing on Vodafone Idea Limited's petition challenging additional government demands in relation to Adjusted Gross Revenue (AGR) till October 27.

The company has challenged the additional AGR dues demanded by the Department of Telecommunications (DoT) for the period up to 2016-17. At the previous hearing (October 6), the court had adjourned the matter to October 13 at the request of Solicitor General Tushar Mehta.

What is Vodafone-Idea demanding?
Vodafone-Idea has sought cancellation of the additional AGR amount demanded by DoT for the period up to 2016-17. In a new petition, the company has challenged the new demand of Rs 5,606 crore for 2016-17 in the Supreme Court. Additionally, Vodafone-Idea has sought a direction from the court to re-evaluate and comprehensive renegotiation of all AGR dues in accordance with the 'Deduction Verification Guidelines' (February 3, 2020). The AGR story: In 2021, the Supreme Court dismissed petitions filed by telecom companies seeking correction of alleged errors in the calculation of AGR dues. In 2020, the court ordered the companies to pay the total AGR dues of ₹93,520 crore over 10 years. Under this order, telecom companies are required to pay 10% of the total dues by March 31, 2021, and the remaining amount in annual installments until 2031. The court clearly stated that the dues would be considered final, allowing no disputes or reviews in the future. Vodafone Idea's current status: Vodafone Idea has outstanding AGR dues of ₹83,400 crore as of March 2025. According to the company, as of June 30, it had a total outstanding debt of ₹1,945 crore from banks, while its total liabilities, including spectrum allotment (until FY 2044) and AGR payments (until FY 2031), stood at ₹1.99 lakh crore. The government has acquired a 49% stake in Vodafone-Idea through a debt-to-equity swap, but it is not a promoter of the company. What is AGR? Adjusted Gross Revenue (AGR) is the revenue on which telecom companies are required to pay license fees and spectrum charges to the government. Previously, AGR included non-telecom revenue, such as interest and sale of assets, in addition to telecom services. In 2021, rules were amended to exclude non-telecom revenue from AGR, reducing financial pressure on companies.

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