On Monday, October 27, 2025, the Supreme Court granted the Centre permission to examine telecom major Vodafone Idea Ltd’s appeal. The company is challenging the Department of Telecommunication’s (DoT) additional demands for Adjusted Gross Revenue (AGR) for the period leading up to 2016–17. The Court observed that this matter falls within the government’s policy domain.
A judicial panel, including Chief Justice B.R. Gavai and Justice K. Vinod Chandran, issued this directive while considering Vodafone Idea’s writ petition. The company had contested the DoT’s new AGR-related demands, arguing that these additional claims were invalid since its liabilities had already been finalized by the Supreme Court’s 2019 judgment on AGR dues.
During the proceedings, Solicitor General Tushar Mehta, representing the Centre, informed the court that the government now possesses a 49% equity stake in Vodafone Idea. He also emphasized that approximately 20 crore consumers rely on the company’s services.
Given these circumstances, Mehta stated that the Centre was prepared to investigate the issues raised by Vodafone Idea to ensure that consumer interests are protected. The Bench acknowledged that the petition sought not only the annulment of additional AGR demands for 2016-17 but also comprehensive reassessment of all outstanding dues.
“The solicitor general, acting on instructions, confirms that in light of the changed circumstances—specifically the Centre acquiring 49 percent equity and 20 crore customers utilizing the petitioner’s service—the Union is ready to examine the issues presented by the petitioner (company),” the Bench remarked.
“Considering the current status of the case, where the government has injected substantial equity into the company and recognizing the direct impact on 20 crore customers, we see no reason to prevent the Union from reconsidering this matter and taking appropriate action,” the Chief Justice stated in the order.
The Bench further clarified that the issue falls squarely within the Union’s policy jurisdiction. It concluded, “There is no reason why the Union should be hindered from acting on this, and with that perspective, we are disposing of the writ petition.”
Senior advocate Mukul Rohatgi, representing Vodafone Idea, had argued that the DoT’s additional demand of ₹5,606 crore for the financial year 2016–17 was baseless, as the dues had already been definitively settled following the Supreme Court’s 2019 verdict.
Adjusted Gross Revenue (AGR) refers to the revenue figure used to calculate the license fees and spectrum usage charges that telecom operators must pay to the government. The long-standing dispute over AGR, particularly concerning the inclusion of non-telecom income in its calculation, has imposed significant financial burdens on telecom operators, with Vodafone Idea and Bharti Airtel being among those most severely affected.