VIL had filed a fresh petition challenging the Department of Telecommunications’ (DoT) demand of Rs 5,606 crore for the financial year 2016–17, seeking a direction for the DoT to “comprehensively re-assess and reconcile” all AGR dues for the period up to FY 2016–17, in line with the Deduction Verification Guidelines dated February 3, 2020.
The Supreme Court’s deferral follows earlier setbacks for Vodafone Idea and other telecom majors. Earlier this year, the apex court had rejected petitions from VIL and Bharti Airtel seeking rectification of alleged errors in the 2021 order calculating AGR dues.
Government signals possible settlement
Despite the legal roadblocks, the Centre has indicated efforts are underway to find a resolution. Last month, the government told the apex court that “some solution may be required” for Vodafone Idea’s petition. Bloomberg reported on October 6, citing sources, that India is considering a one-time settlement of its longstanding AGR dues from Vodafone Group Plc’s local venture, potentially through a waiver of interest and penalties, followed by concessions on the principal.Officials are reportedly drafting the framework while evaluating measures to prevent legal challenges from other telecom operators with AGR obligations, according to the Bloomberg report. The total dispute amounts to nearly Rs 2 lakh crore.
The delayed hearing adds to the uncertainty surrounding Vodafone Idea’s balance sheet and investor sentiment. As the Supreme Court sets the next date for October 27, investors will be watching closely for any signs of a concrete resolution that could reshape Vodafone Idea’s financial outlook.
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