In a significant shift, the government on Friday told the Supreme Court that it is not opposing Vodafone Idea’s plea in the ongoing ₹9,450 crore AGR dues dispute, stressing that “some solution is required” to resolve the matter.
Solicitor General Tushar Mehta, representing the Department of Telecom (DoT), informed the bench that circumstances have changed, noting that the government is also an equity holder in Vodafone Idea. This marks a departure from the Centre’s earlier rigid position on AGR-related recoveries.
What’s at stake
The DoT has raised a demand of ₹9,450 crore, including ₹2,774 crore attributable to the post-merger Vodafone Idea entity and ₹5,675 crore linked to pre-merger Vodafone Group liabilities. Vodafone Idea has contested the demand, alleging duplication and errors in the calculations, especially for dues dating back to the pre-FY17 period.
A potential opening for relief
The Supreme Court, led by Chief Justice DY Chandrachud, has listed the case for hearing next Friday. With the Centre now appearing open to exploring a middle path, industry watchers believe this could pave the way for some relief to the financially stressed telco.
The government’s softened stance is being viewed as a recognition of its dual role — not just as a regulator seeking dues but also as a stakeholder in Vodafone Idea’s survival, with equity already infused through prior debt-to-equity conversions.
