In a significant relief for Vodafone Idea Limited, the Supreme Court on Monday allowed the Union government to revisit the additional Adjusted Gross Revenue (AGR) demands issued against the telecom company. The Bench, comprising Chief Justice of India BR Gavai and Justice Vinod Chandran, observed that since the government now holds a 49% equity stake in Vodafone Idea and nearly 20 crore subscribers depend on its services, a re-examination of the disputed dues was justified.
Background
The controversy stems from the Department of Telecommunications (DoT) issuing fresh AGR demands beyond what had already been settled by the Supreme Court’s earlier rulings in 2020. Those judgments had fixed Vodafone Idea’s total liability at ₹58,254 crore for the period up to FY 2016–17, clearly stating that no reassessment or recalculation could take place thereafter.
However, the DoT continued to raise additional claims—some described as “supplementary” or “above and beyond” the crystallised dues. In one instance, an August 2023 notice sought ₹292 crore for FY 2015–16. Another letter dated August 2025 placed the total at nearly ₹9,450 crore, of which ₹5,606 crore related to the already settled period. The company argued that these fresh assessments violated the finality of earlier court directions.
Senior Advocate Mukul Rohatgi, appearing for Vodafone Idea, submitted that the new demands were not only contrary to the 2020 verdict but also created uncertainty for the telecom sector. “Once liabilities are crystallised by the Supreme Court, the DoT cannot keep reopening them year after year,” he argued.
Court’s Observations
During the hearing, Solicitor General Tushar Mehta informed the Court that the government was open to reviewing the issue in light of changed circumstances. He pointed to the Centre’s substantial equity infusion and the public interest tied to the company’s continued operation.
The Bench agreed. “Taking into consideration the change in circumstances that now the government itself has induced substantial equity in the petitioner company, and further that the issue involved is likely to have direct bearing on the interest of 20 crore consumers, in the particular facts, we see no impediment in the Union of India reconsidering the issue,” the judges said.
The Court underlined that this decision falls squarely within the government’s policy domain. “If the Union, addressing a larger public interest, desires to reconsider the issue, there should be no reason as to why it should be prevented,” the order stated.
Decision
With these remarks, the Supreme Court disposed of Vodafone Idea’s petition, granting the Department of Telecommunications permission to reexamine the disputed AGR dues. The Court’s order effectively paves the way for the government to undertake a fresh evaluation of its demands, potentially easing Vodafone Idea’s financial burden while balancing consumer interests.
The ruling may also serve as a precedent for other telecom operators facing similar legacy issues, though the Court stopped short of making any broad pronouncement beyond this specific case. For now, Vodafone Idea has secured breathing space something it sorely needed amid its ongoing battle to stay afloat in India’s competitive telecom market.
Case: Vodafone Idea vs Union of India – Supreme Court permits Centre to reconsider additional AGR dues
Court: Supreme Court of India
Bench: Chief Justice BR Gavai and Justice Vinod Chandran
Petitioner: Vodafone Idea Limited
Respondent: Union of India / Department of Telecommunications (DoT)