The Supreme Court of India on Monday allowed the Union government to reconsider its demand for reassessment of Vodafone Idea’s adjusted gross revenue (AGR)
dues, noting that the matter lies within the policy space of the Union. The court stressed that the government’s decision was influenced by its stake in the company, it has injected equity to the tune of 49 per cent, and by the interests of the company’s 20 crore consumers. The bench said in its order, "The SG on instructions states that taking into consideration the change in circumstances, that is the Government of India acquiring 49 per cent equity, and the larger aspect that 20 crores customers utilising the service of the petitioner, the Union is willing to examine the issues raised by the petitioner. It is further submitted that the government has agreed to reconsider it and take an appropriate decision, if the Court so permits." "Taking into consideration the status of the case now, the government has infused substantial equity into the company, and further, that the issue involved is likely to have a direct bearing on the interests of 20 crores customers, we see no issue in the Union reconsidering the issue and taking an appropriate decision," the SC added. Settlement In Policy Domain The Court further clarified that the order was passed in light of the peculiar facts of the case and that the subject matter pre-exists in the policy decision category of the Union. "We clarify that this is a matter within the policy domain of the Union. If the Union, in the peculiar facts and circumstances, the Union, in the larger interest, reconciles the issue, there is no reason why that Union should be prevented from doing, with that view of the matter, we dispose of the writ petition." The judgment stressed that the relief applies only to these unique circumstances, the government’s significant equity infusion and the vast consumer base. The SC noted that it was disposing of the petition on those specific facts. What This Means For Vodafone Idea This decision opens a vital policy window for Vodafone Idea, which has been under financial stress for a long time and was seeking relief to stay afloat and attract fresh investment. Following the verdict, the company’s stock surged sharply, wiping out earlier losses and hitting a 52-week high as investor sentiment improved. The long-running AGR dispute dates back to 2019, when the Supreme Court upheld the definition of AGR that included non-telecom revenue like interest and asset sales. In 2020, the court allowed telecom operators to pay the dues over ten years, but had earlier ruled that no further reassessment of those dues would be permitted.
