The Supreme Court has agreed to hear a plea on Sept 26 by telecom major Vodafone Idea seeking to quash the additional adjusted gross revenue (AGR) demands for the period up to 2016-17, as per a report by PTI.
According to PTI, a bench of Chief Justice B R Gavai and Justices K Vinod Chandran and N V Anjaria scheduled the hearing on next Friday. The bench took note of submissions by senior advocate Mukul Rohatgi, representing Vodafone Idea, and Solicitor General Tushar Mehta, appearing for the Centre.
“We will keep it on Friday,” the Chief Justice said according to PTI. The law officer added that circumstances have changed, and both parties are now looking for a solution.
Share price of Vodafone Idea
The share price of Vodafone Idea saw a sudden jump following the reports. Vodafone Idea’s stock price surged 10 per cent to Rs 8.61, intra-day.
Fresh plea by Vodafone Idea for re-assessment of AGR dues
Vodafone Idea filed a fresh plea on September 8, requesting a direction to the Department of Telecommunications (DoT) to “comprehensively re-assess and reconcile all AGR dues for the period up to FY 2016-17 following the ‘Deduction Verification Guidelines’” dated February 3, 2020.
Earlier this year, the apex court had refused to review its 2021 order rejecting telecom majors’ pleas for rectification of alleged errors in AGR dues calculation.
Supreme court dismisses Vodafone Idea and Airtel pleas earlier
The top court had, on July 23, 2021, dismissed applications from Vodafone Idea and Bharti Airtel seeking correction of alleged arithmetical errors and duplication of entries in AGR calculations.
In September 2020, the Supreme Court had set a 10-year timeline for telecom operators to clear AGR dues of Rs 93,520 crore. Operators were directed to pay 10% of the total dues by March 31, 2021, with the remaining amount to be paid in yearly installments from April 1, 2021, to March 31, 2031.
The court had also clarified that the DoT’s demand regarding AGR dues was final, leaving no scope for disputes or re-assessment. The original AGR verdict was delivered in October 2019.
DoT’s Proposal
The Department of Telecommunications had approached the Supreme Court seeking a staggered payment plan for telecom companies to settle AGR dues over 20 years.
With the inputs from PTI.
