New Delhi: The Supreme Court on Monday deferred the hearing to October 13 in a plea filed by Vodafone Idea, challenging fresh Adjusted Gross Revenue (AGR) demands raised by the Department of Telecommunications (DoT) for the period up to FY 2016-17.
A bench comprising Chief Justice of India BR Gavai and Justice K Vinod Chandran adjourned the matter following a request from Solicitor General Tushar Mehta, representing the Centre, seeking more time.
Vodafone Idea, in its plea, urged the court to quash the additional AGR demand, arguing that these dues pertain to a period already settled by the Supreme Court’s earlier rulings. The telecom operator has also asked for a comprehensive reassessment and reconciliation of AGR dues in line with the ‘Deduction Verification Guidelines’ issued on February 3, 2020.
The petition termed the DoT’s actions as “unjust, unfair, and arbitrary,” highlighting that while the department has the liberty to raise fresh demands, telecom companies are not being allowed to correct errors in DoT’s assessments. Vodafone Idea alleged duplication and computational errors, stating that certain dues had been counted multiple times.
The AGR issue traces back to the Supreme Court’s landmark judgment in October 2019, which mandated telecom companies to pay AGR dues as calculated by the government. Later, in September 2020, the court granted telecom operators a 10-year timeline to clear their dues, with an annual payment of 10% starting March 31, 2021.
However, in July 2021, the Supreme Court dismissed pleas by Vodafone Idea and Bharti Airtel seeking corrections to alleged errors in the calculation of these dues.
The adjourned hearing on October 13 could be significant for Vodafone Idea, which continues to face financial stress amid mounting liabilities.
