Supreme Court OKs Consolidated AGR Review for Vodafone Idea

Post by : Bianca Suleiman

The Supreme Court on Monday held that the Union government is entitled to undertake a comprehensive reassessment and reconciliation of Vodafone Idea's Adjusted Gross Revenue (AGR) liabilities through the financial year 2016-17, applying the Deduction Verification Guidelines dated February 3, 2020.

The clarification emerged during an oral mention by Vodafone Idea's senior counsel, Mukul Rohatgi and Mahesh Agarwal. The telecom operator had pressed for a full review after an earlier October 27 order was read as addressing only “additional” AGR demands.

Agarwal told the court the firm had sought a combined remedy to re-examine and reconcile all past AGR charges, describing the filing as a technical correction to enable a single, consolidated assessment.

In October, the apex court had left the decision to revisit AGR claims to the Centre. Solicitor General Tushar Mehta pointed to a significant change in circumstances since prior AGR disputes, noting the government now holds a 49% stake in Vodafone Idea.

Mehta argued that the state's equity interest links its fortunes with the company and has implications for some 20 crore subscribers, a factor the court recognised as touching on government policy given the public impact.

Vodafone Idea had sought relief not only against fresh AGR demands but also for a reassessment of all historical liabilities. This follows a prolonged litigation phase during which petitions from Vodafone Idea, Bharti Airtel and Tata Teleservices seeking reduced penalties or interest were dismissed as lacking merit. The court rejected a curative plea in September against a 2019 judgment that upheld the Department of Telecom's recovery claim of roughly ₹92,000 crore from the sector.

With the latest clarification, Vodafone Idea can pursue a unified review of its AGR obligations, providing legal and administrative clarity for both the company and the government.