SC allows Centre to reconsider additional AGR dues of Vodafone Idea

New Delhi [India], October 27 (AN): In a big relief to Vodafone Idea, the Supreme Court on Monday allowed the Centre to reconsider the issue of additional adjusted gross revenue (AGR) demands raised by the Department of Telecommunications (DoT) for the period up to FY 2016-17.
A bench of Chief Justice of India BR Gavai and Justice K Vinod Chandran took note of the government's submission that it is willing to examine and reconsider the issue raised by Vodafone Idea.
Solicitor General Tushar Mehta, appearing for the Centre, told the bench that the government has a 49 per cent stake in the company and 20 crore customers are at stake.
The apex court allowed the Centre to reconsider the issue, as it falls within the government's policy domain.
"We clarify that this is in the policy domain of the Union... there is no reason as to why that Union should be prevented from doing, with that view of the matter, we dispose of the writ petition," the bench ordered.
Vodafone sought directions to quash the additional demand for AGR dues, arguing that it pertained to the pre-2016- 17 period, which had been settled by the Supreme Court's earlier ruling.
It further sought direction that the telecom department comprehensively reassess and reconcile all AGR dues in accordance 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 Supreme Court having crystallised the AGR dues and not carrying out a complete re-assessment in as much as, 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 telecom company claimed that computational errors have led to duplicate entries, with certain amounts added more than once.
By the October 2019 judgement telecoms were asked by the apex court to pay AGR dues.
In September 2020, the Supreme Court had granted telecom companies a period of 10 years to clear their pending AGR dues to the Central government, with 10 per cent payment to be made every year.
The deadline for the telcos to pay the first instalment was March 31, 2021.
In July 2021, the Supreme Court had dismissed the plea of telecom majors, including Bharti Airtel and Vodafone Idea, seeking correction of errors in the calculation of AGR dues payable by them as per the top court's 2019 judgement. (ANI)