New Delhi, October 27 (Monday): In a major relief for the telecom sector, the Supreme Court today observed that there is “no reason why the Centre should be prevented from reconsidering the issue” of Vodafone Idea’s additional AGR dues, paving the way for a potential reassessment of the company’s liabilities.
The court’s observation came during the hearing of Vodafone Idea’s plea seeking to quash the Department of Telecommunications’ (DoT) additional AGR demand of ₹9,450 crore for FY2016–17 and a comprehensive reassessment of dues. The bench, led by Chief Justice BR Gavai, noted that the Centre’s 49% equity stake in Vodafone Idea and its 20 crore customer base have significantly altered the circumstances since the original 2019 judgment.
Supreme Court statement
The Chief Justice of India (CJI) stated:
“Taking into consideration the change in circumstances, with the Government of India holding 49% equity and over 20 crore consumers using the services of the petitioner, we see no reason why the Union should be prevented from reconsidering the issue and taking appropriate steps.”
Why this matters
This development is positive for both Vodafone Idea and Indus Towers, as it signals the Centre’s openness to reviewing the dues computation, potentially easing the financial burden on Vodafone Idea.
Indus Towers, which relies heavily on Vodafone Idea for tower rentals, could also benefit if Vodafone Idea’s liquidity position improves following any recalibration of its dues.
The Solicitor General Tushar Mehta, representing the government, submitted that the Union is willing to examine the issues raised by Vodafone Idea, given its substantial equity involvement and the direct impact on millions of consumers.
Market reaction
Following the court’s observation, Vodafone Idea shares rose over 3% to ₹9.93, while Indus Towers is also expected to see positive momentum as investor sentiment improves on the likelihood of regulatory and financial clarity.
The case marks a turning point for Vodafone Idea, which has long struggled with debt and pending statutory liabilities. The court’s green light for government reconsideration could reshape the company’s financial trajectory and support sectoral stability.
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