By Indu Bhan

Copyright indiatimes

ETMarkets.com

The Supreme Court on Friday deferred the hearing of Vodafone Idea’s petition against the Department of Telecommunications’ Rs 9,450 crore additional Adjusted Gross Revenue (AGR) dues to September 26. However, the SC also observed that there needs to be some finality to these proceedings.A bench comprising Chief Justice B R Gavai and Justices K Vinod Chandran and NV Anjaria was hearing the plea made by Senior Advocate Mukul Rohatgi for the telecom company and Solicitor General Tushar Mehta, representing the Centre.”In light of larger public interest, the government has also infused 49% equity. Some solution may be required, subject to SC approval. SC can also grant some indulgence that facts have changed between earlier petition and now,” the SG said during the hearing.Vodafone Idea share prices jumped post the hearing, and was trading at Rs 8.37, up 6.62% on Friday as of 12.06 pm. The cash-strapped teleco had challenged the DoT’s notice earlier this week, arguing that the fresh demand exceeds the parameters set by the apex court’s earlier ruling on AGR obligations. In its plea, the company sought to nullify the demand and had requested a comprehensive reconciliation of dues, particularly those accrued before FY17.Live EventsThe payment of pending AGR amount, along with the additional amount, is due by March 31, 2026.Breakdown of the AGR claim Of the total Rs 9,450 crore claimed by the DoT, around Rs 2,774 crore relates to the post-merger Vodafone Idea entity, while Rs 5,675 crore pertains to pre-merger Vodafone Group liabilities. The telco has said that the DoT’s calculations contain duplications and potential errors, arguing that a proper reconciliation is required before any payment can be enforced. The DoT, however, has maintained that this additional claim does not amount to a reassessment. Instead, it reflects the finalisation of pending accounts and identification of gaps after the financial statements were closed. Vodafone Idea disputes this, asserting that the DoT cannot unilaterally raise fresh demands without first correcting existing arithmetical and clerical errors. The company has flagged multiple instances of double counting of revenue items, which it says must be addressed.Legal arguments & previous rulings The Aditya Birla-owned teleco has based its case on earlier top court judgments, including the apex court’s rulings of July 20, 2020, and September 1, 2020, which had effectively crystallised AGR liabilities up to FY17 and prohibited any reassessment of those dues. The company argues that the additional demand raised by DoT contradicts these judgments and is “unjust, unfair and arbitrary.” In its petition, the telco noted that DoT’s August 13 letter raised additional outstanding license fee dues for FY18–19, which the company claims should not affect previously settled amounts. The DoT’s computations place the total additional claim at approximately Rs 9,450 crore. Of this, roughly Rs 5,606 crore relates to liabilities up to FY16–17 that have already been crystallised by the court, while any extra SUC (spectrum usage charges) for that period would bring the amount to around Rs 6,800 crore.Add as a Reliable and Trusted News Source Add Now!
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(You can now subscribe to our Economic Times WhatsApp channel)Read More News onvodafone ideaDepartment of TelecommunicationsAGR duesreconciliation of duesVodafone IdeaVodafone GroupAditya Birlaagrdots(Catch all the Business News, Breaking News, Budget 2025 Events and Latest News Updates on The Economic Times.) Subscribe to The Economic Times Prime and read the ET ePaper online….moreless