Supreme Court Clears Path for Vodafone Idea's AGR Reassessment

In a significant relief for Vodafone Idea, the Supreme Court has permitted the Union government to reevaluate the telecom giant's adjusted gross revenue (AGR) dues amounting to Rs 5,606 crore for 2016-17. The court observed that the issue resides within the government's policy domain.

Chief Justice B R Gavai and Justice K Vinod Chandran issued the order while hearing Vodafone Idea's petition against the Department of Telecommunications' (DoT) fresh demands. Vodafone Idea hailed the ruling as a 'positive development,' expressing eagerness to collaborate with the telecom department in the interest of 200 million subscribers.

The decision is viewed as a boost to the Digital India initiative, and Vodafone Idea's shares saw an upswing of nearly 4 percent following the news. The Solicitor General noted the government's 49 percent equity in the company, impacting consumer protection considerations.