The development helped ease overhang concerns among investors regarding the telecom firm’s massive liabilities.
Vodafone Idea had moved the apex court seeking clarification on whether the government could consider relief on both additional AGR dues and the total outstanding dues.
The Supreme Court stated that the government had the authority to take a call on both components, which helped in clearing the ambiguity that arose from an earlier ruling on October 27, according to media reports.
In the previous hearing, there was confusion over whether the relief applied only to Vodafone Idea’s plea on additional AGR dues worth Rs 9,500 crore or extended to the full AGR liability amounting to nearly Rs 80,000 crore. The latest observation by SC confirms the scope is broader.
Vodafone Idea, in its plea, flagged discrepancies in the court’s earlier order, which mentioned the total AGR dues, whereas the company had specifically sought relief only on additional dues.The Supreme Court acknowledged this inconsistency and permitted the government to reconcile all AGR dues, not just the additional ones, and consider appropriate relief.While the court had previously quashed Vodafone Idea’s earlier plea seeking relief in the AGR dues case, it allowed the Centre to review and offer relief at its discretion. In the latest hearing, the apex court also gave a green signal to modify the earlier order to correct the error and include the full scope of AGR dues and penalties.
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This has provided the much-needed procedural flexibility to the Centre in deciding how to proceed with the dues.
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