Supreme Court Questions Vodafone’s Fresh AGR Dues Plea Despite Earlier Final Order, Hearing Set for Next Week

By Vivek G. • September 19, 2025

Supreme Court questions Vodafone Idea’s fresh AGR dues plea, stresses “finality” but allows one-week adjournment for possible settlement.

New Delhi, Sept. 19- The Supreme Court today expressed sharp doubt over Vodafone Idea’s latest attempt to contest fresh demands on adjusted gross revenue (AGR) dues, saying the long-running dispute “has to end somewhere.” The bench, led by Chief Justice B.R. Gavai with Justices K. Vinod Chandran and N.V. Anjaria, stopped short of dismissing the matter outright but made it clear that reopening settled issues would not be easy.

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Background

The telecom giant has again challenged the Department of Telecommunications (DoT) for raising an additional ₹5,606 crore demand for the 2016–17 period. Vodafone argues these liabilities were already “crystallised” by the Supreme Court’s 2019 ruling that upheld the government’s broader definition of AGR-revenue used to calculate license fees.

That 2019 judgment, which included non-core income like rentals and interest, shook the entire telecom sector and left companies scrambling to pay over ₹1.4 lakh crore. Earlier review and curative pleas were thrown out in 2020, and operators were given a decade to clear dues.

Court’s Observations

Right at the outset, Solicitor General Tushar Mehta, appearing for the Centre, sought a short adjournment, saying the government—now a 50% equity holder in Vodafone- was working with the company to find a “practical resolution.” Senior Advocate Mukul Rohatgi supported the request, citing “changed circumstances” since the earlier dismissal.

But the bench remained sceptical. “With the order passed in those four petitions, there has to be some finality to the proceedings,” Chief Justice Gavai remarked, repeating the phrase for emphasis. He added pointedly, “The last order passed by the other bench… we have seen that order.”

Rohatgi tried to draw a distinction, arguing, “What has prompted me to come today has nothing to do with the old case,” while Mehta countered that “circumstances have changed” in the company’s financial and ownership landscape.

The Chief Justice listened but did not immediately warm to the idea of revisiting a dispute once deemed closed. “There has to be some finality,” he reiterated, signalling that the court will not easily re-open doors it had already shut.

Decision

After brief exchanges, the bench agreed to list the matter for next Friday, allowing time for possible settlement talks between Vodafone and the government. No interim relief was granted, and the Supreme Court ended the hearing with a cautionary note that past orders would weigh heavily when arguments resume.

Case: Vodafone Idea Ltd. vs. Union of India – AGR Dues Dispute

Case No.: W.P.(C) No. 882/2025

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