Supreme Court to examine on September 26 Vodafone plea for quashing additional AGR

The telecom company filed a fresh plea on September 8 seeking a direction to the Department of Telecommunications to 'comprehensively re-assess and reconcile all adjusted gross revenue dues for the period up to FY 2016-17'

New Delhi: The Supreme Court on Friday agreed to consider a plea by telecom major Vodafone Idea Ltd seeking quashing of the additional adjusted gross revenue (AGR) demands for the period until 2016-17. 

A bench of Chief Justice of India B R Gavai and Justices K Vinod Chandran and N V Anjaria, however, said, "There has to be some finality to the proceedings".

The court fixed the matter for consideration on September 26. Senior advocate Mukul Rohatgi represented the telecom firm, and Solicitor General Tushar Mehta represented the Centre. 

Mehta said the parties wanted to find a solution, as the circumstances have changed now. He sought an adjournment on the matter. He contended that the government and the company were trying to find a resolution. Mehta pointed out that the government had bought 50 per cent shares of Vodafone.

The bench said it can fix the matter for the hearing next Friday. The counsel informed that the facts and circumstances have now changed since the dismissal of the earlier matter. 

"There has to be some finality to the proceedings," the bench said.

Rohatgi submitted that what has prompted him to approach the court now has nothing to do with the old case. 

Mehta and Rohatgi submitted that they will be able to convince the court and requested for adjournment till next week.

Mehta said the government of India is also a stakeholder after infusing 50 per cent equity, and some solution may have to be found out, subject to the court's approval.

The bench was informed that the telecom company has to pay a licence fee to the government, and it is calculated based on gross revenue.

Fresh plea

The telecom company filed a fresh plea on September 8 seeking a direction to the Department of Telecommunications (DoT) to "comprehensively re-assess and reconcile all AGR dues for the period up to FY 2016-17 following the Deduction Verification Guidelines" of February 3, 2020.

2021 order of Supreme Court

In a setback to telecom majors, including Bharti Airtel and Vodafone Idea, the apex court had refused to review its 2021 order rejecting their pleas for rectification of alleged errors in the calculation of AGR dues payable by them. The court had then dismissed their pleas seeking review of the 2021 order.

The court had, in July 2021, dismissed the applications seeking rectification of the alleged errors in the calculation of AGR dues. The telecom companies had argued that arithmetical errors in the calculation should be rectified, and there were cases of duplication of entries. In September 2020, the court had fixed a time frame of 10 years for telecom service providers struggling to pay Rs 93,520 crore of AGR-related dues to clear their outstanding amount to the government.