Vi seeks waiver of interest, penalties on AGR dues; files amended petition
Telco urges Supreme Court to order reconciliation of disputed liabilities; government, now a major equity holder, says solution is necessary as dues mount near ₹2 lakh crore.
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Vodafone Idea (VIL) has filed an amended petition in the Supreme Court seeking a waiver of interest and penalty on its adjusted gross revenue (AGR) dues, while also requesting a recalculation of its liabilities. The company argued that disputed components of the dues are yet to be finalised, even as it has already cleared all undisputed amounts on a self-assessment basis.
The petition, filed on September 18, was taken up by a bench led by Chief Justice B R Gavai last week, but the hearing was deferred to October 6 after Solicitor General Tushar Mehta sought more time.
VIL said it cannot be deemed a defaulter until the principal amount is reconciled and finalised. “Until the principal amount payable is crystallised, the petitioner cannot be said to be in default requiring payment of penalty,” the company submitted, noting that both the Department of Telecommunications (DoT) and the operator agree reconciliation is pending.
The telco also invoked the Supreme Court’s July 2024 judgment in the Mineral Area Development Authority vs Steel Authority of India case, where the court struck down certain levies and waived interest and penalties on past demands. VIL argued that the same principle should apply to AGR dues.
Read more: Relief or Rumor! Vodafone Idea shares surge despite no official word on Rs 84,000 crore AGR dues
The case is rooted in the Court’s March 2020 ruling, which upheld DoT’s calculation of AGR dues up to FY17 and barred reassessment. Despite this, DoT has raised fresh claims of ₹5,606 crore for FY17 and additional demands of ₹9,450 crore spanning FY17 and earlier. Of this, ₹2,774 crore is directed at Idea Group and Vodafone Idea (post-merger), while ₹6,675 crore has been raised against Vodafone Group for the pre-merger period.
Vodafone Idea currently owes about ₹83,400 crore in AGR dues, with annual instalments of ₹18,000 crore starting March 2025. Including interest and penalties, the company’s liabilities are estimated to be close to ₹2 lakh crore. The Centre, which now owns 48.99% of VIL after converting ₹53,083 crore of dues into equity in 2023 and 2025, told the Court it did not oppose the plea but stressed the need for a resolution.
The matter will next be heard on October 6.
