The Supreme Court on Friday scheduled a hearing for Friday, September 26 on a plea filed by Vodafone Idea (Vi), challenging fresh Adjusted Gross Revenue (AGR) demands raised by the Department of Telecommunications (DoT) for the financial period up to FY 2016-17.
DoT had issued a fresh AGR demand of Rs 9,450 crore, which Vi reportedly contends includes “already settled or duplicate claims.” The case holds significant implications for the telecom sector and the survival of Vodafone Idea, in which the government also holds an equity stake.
Court presses for closure
Earlier, the bench led by Chief Justice of India BR Gavai, along with Justices K Vinod Chandran and NV Anjaria, had emphasised the need to end the prolonged dispute. “There has to be some finality to the proceedings,” the bench observed.
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Solicitor General Tushar Mehta, appearing for the Centre, sought an adjournment for next week, citing ongoing efforts between the government and the company to work out a resolution.
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Vodafone Idea’s arguments
Vodafone Idea’s petition urged the court to quash the additional AGR demand, arguing it pertained to the pre-2016-17 period already settled by the apex court’s earlier rulings. It also sought a comprehensive reassessment of AGR dues in line with the “Deduction Verification Guidelines” issued on February 3, 2020.
“The action of DoT was completely unjust, unfair and arbitrary in seeking to raise additional demands despite the Apex court having crystallised the AGR dues and not carrying out a complete re-assessment since, while DoT is at liberty to raise additional demands, the petitioner is not being permitted to seek correction of assessments made by DoT which have been thrusted upon the petitioner,” the petition stated.
The company further claimed that computational errors led to duplication, with certain amounts being added more than once.
Read More: Vodafone Idea shares rise 9% as Centre softens stance on AGR dues, SC hearing deferred
AGR dispute history
In its landmark October 2019 judgment, the Supreme Court ordered telecom operators to pay AGR dues. A year later, in September 2020, the court allowed telcos 10 years to clear these dues, with a requirement to pay 10 per cent annually beginning March 31, 2021.
However, in July 2021, the top court dismissed pleas from telecom majors including Vodafone Idea and Bharti Airtel seeking correction of alleged errors in AGR calculations.
Vodafone Idea’ stock performance
Meanwhile, on Thursday, Vodafone Idea’s stock closed with a slight gain. The company’s share opened at Rs 8.63 and closed at Rs 8.68, marking an increase of around 1.05 per cent. During the day’s trade, the stock touched a high of Rs 8.84 (Day High) and a low of Rs 8.58 (Day Low).
Over the past 52 weeks, the stock has traded in the range of Rs 6.12 (52-week low) to Rs 10.97 (52-week high), keeping investors’ hopes alive.
