Supreme Court Allows Govt to Reassess Vodafone Idea's AGR Dues

The Supreme Court of India has allowed the government to reassess Vodafone Idea's adjusted gross revenue (AGR) dues of Rs 5,606 crore for the fiscal year 2016–17. The decision follows a writ petition from Vodafone Idea and comes amid the government's partial equity stake in the company.

In a significant move, the Supreme Court permitted the Central Government to reassess Vodafone Idea's pending adjusted gross revenue (AGR) dues, amounting to Rs 5,606 crore for the financial year 2016-17. The decision marks a crucial development in the policy domain, as it involves the government's partial equity stake in the telecom giant.

On Monday, Vodafone Idea's shares surged nearly 4%, reflecting investor optimism surrounding the Supreme Court's decision. The adjusted gross revenue is used to calculate fees that telecom companies owe to the government, an issue that has long troubled the industry.

The court's writ petition hearing, brought forth by Vodafone Idea, challenges the Department of Telecommunications' fresh AGR demands. With the government's 49% equity stake and the telco's 200 million customers, this ruling underscores the priority of consumer interests and the reassessment of dues.

(With inputs from agencies.)