Vodafone Idea files amended petition in SC seeking AGR relief
What's the story
Vodafone Idea (Vi) has filed an amended petition in the Supreme Court, seeking a waiver of interest and penalty on its adjusted gross revenue (AGR) dues. The company also requested a recalculation of AGR liabilities, citing earlier cases where similar demands were accepted. This new petition differs from Vi's previous plea which only focused on recalculating AGR liabilities.
Hearing postponed
Supreme Court adjourned hearing on Vi's plea to October 6
Last week, the Supreme Court had adjourned the hearing on Vi's plea to October 6. The Centre said it doesn't oppose Vi's plea but stressed that a solution was needed as the government is also an equity holder in the company. This was during a hearing over Department of Telecom's (DoT) demand of ₹5,606 crore for FY 2016-17 against Vi.
Legal argument
Vi seeks additional reliefs in amended petition
Vi contended that the dues in question were already "crystallized" by the 2019 AGR judgment and couldn't be reopened. Solicitor General Tushar Mehta, representing the Centre, sought an adjournment to October 6. In its amended petition, Vodafone Idea also cited previous judgments where waivers had been granted. The company requested an additional relief asking that interest, penalty and interest on penalty on principal AGR dues should not be payable.
Legal proceedings
Case origins and significance
The case stems from the Court's March 18, 2020 order, which upheld AGR dues up to FY17 as calculated by DoT and barred any reassessment by operators. However, despite this ruling, DoT has raised fresh claims for FY18 and FY19. Vi contends that much of the new demand overlaps with periods already settled by the apex court.
Equity stake
Government's stake in Vodafone Idea post equity conversion
The Central government now holds a 48.99% stake in Vodafone Idea, having converted ₹53,083 crore of dues into equity. Of the ₹9,450 crore fresh demand, ₹2,774 crore is against Idea Group and Vodafone Idea (post-merger), while ₹6,675 crore is directed at Vodafone Group for the pre-merger period. Vi already owes ₹83,400 crore in AGR dues, with annual installments of ₹18,000 crore starting March. Including penalties and interest, the company's total liabilities to the government are estimated at ₹2 lakh crore.