The government is set to seek legal advice on the Supreme Court’s recent order permitting it to reconsider adjusted gross revenue (AGR) dues — a relief applicable exclusively to Vodafone Idea Ltd and limited to additional AGR demands raised up to FY2016-17.
An official familiar with the matter told Moneycontrol that no decision would be taken until legal experts are consulted.
“The government is yet to obtain legal advice, and as in any such matter, we will have to consult our legal experts before taking further steps,” the official said on condition of anonymity.
Scope of the Supreme Court Order
The Supreme Court clarified that the relief applies only to Vodafone Idea and pertains solely to additional AGR dues up to FY2016-17, citing the “peculiar facts and circumstances” of the case — notably the Union government’s 49% equity stake in the telecom operator.
In its October 27 order, a Bench led by Chief Justice B. R. Gavai stated:
“It is further to be noted that the prayer in the petition itself restricts its claim only to the additional AGR demand raised by the respondent for the period up to the Financial Year 2016-17. We further clarify that this order is passed only with regard to the petitioner—Vodafone Idea Ltd.—taking into consideration the peculiar facts and circumstances of the case as put up by the Union of India.”
Government’s Next Steps
Officials said the Centre will evaluate the judgment thoroughly before deciding on any relief measures for Vodafone Idea.
“The finer details of the judgment will guide us on the course of action for any possible relief,” a senior government official said, noting that the written order is still awaited.
Another source added that Vodafone Idea will have to formally submit its request for relief once the court issues its final directive. “The extent of any relief will depend on internal deliberations and the court’s final wording,” the official said.
Minister Scindia’s Remarks
Telecom Minister Jyotiraditya Scindia confirmed that the government will study the order before making any policy decisions.
“We will need to study the order to understand its implications and will wait for Vodafone Idea to apply for seeking relief,” he said on October 29.
Public Interest Angle
The Supreme Court also emphasized that the case carries significant public interest, noting that the government holds a 49% stake in Vodafone Idea, which serves nearly 20 crore subscribers across India.
