Vodafone Idea Gets Relief As Supreme Court Allows Government To Re-Examine AGR-Related Demands
In a significant development, the Supreme Court on Monday allowed the Department of Telecommunications (DoT) to reconsider the additional Adjusted Gross Revenue (AGR) demands raised against Vodafone Idea Limited. The decision comes as a major relief for the company, given that the Central government now holds a 49% equity stake and over 20 crore consumers depend on its services.
A Bench comprising Chief Justice of India BR Gavai and Justice K Vinod Chandran noted that, in view of the government’s ownership and the large public interest involved, a fresh look at the issue was justified.
“Considering that the government itself holds substantial equity in the company, and that the matter affects around 20 crore consumers, we see no reason to prevent the Union of India from reconsidering the issue in accordance with law,” the Bench stated.
The Court further clarified that the matter falls within the policy domain of the government and that the judiciary would not interfere if such re-examination is undertaken in public interest.
Solicitor General Tushar Mehta, appearing for the Central government, submitted that due to changes over the last five years — including the government’s equity infusion in Vodafone Idea — it was appropriate to revisit the fresh AGR demands.
The dispute stems from new AGR-related demands raised by the DoT for the period up to FY 2016–17. Vodafone Idea argued that these were contrary to the Supreme Court’s earlier rulings of July and September 2020, which had already finalised the company’s total dues at ₹58,254 crore. Those judgments explicitly prohibited any further recalculation, self-assessment, or reassessment of AGR liabilities.
Despite this, the DoT reportedly raised fresh claims exceeding ₹5,960 crore, including an August 2023 notice demanding around ₹292 crore for FY 2015–16. More recently, in August 2025, the DoT computed additional dues of ₹9,450 crore up to FY 2018–19, of which nearly ₹5,606 crore pertained to already settled periods.
Vodafone Idea also highlighted that while the government continues to issue new demands, telecom operators have been denied permission to rectify clerical or calculation errors in the original assessments. Previous applications by the company for such reconciliation were dismissed by the Supreme Court in 2021 and again in early 2025.
In its current plea, Vodafone Idea sought to quash these new demands and ensure that dues up to FY 2016–17 remain final and binding. Alternatively, it requested a fair reconciliation based on the Deduction Verification Guidelines issued in February 2020.
Accepting the government’s willingness to review the matter, the Court disposed of the petition, granting liberty to the Centre to re-examine the additional AGR claims.
Senior Advocate Mukul Rohatgi and Advocate Mahesh Agarwal represented Vodafone Idea in the proceedings.
