Relief for Vodafone Idea as Supreme Court orders govt to reassess AGR dues up to FY17

The Supreme Court on Monday clarified that the government could reassess and reconsider all of Vodafone Idea’s adjusted gross revenue (AGR) dues as of FY17, including interest and penalties, delivering significant relief to the cash-strapped telecom company. AGR is the income figure used to calculate the licence fees and spectrum charges that telecom companies must pay the government.

The clarification relates to a Supreme Court order dated 27 October, in which the Court restricted the relief to Vodafone Idea on the additional AGR dues for period up to FY17. The additional AGR demand raised by the government from the telecom operator for the said period is around ₹5,606 crore. However, overall the company’s AGR dues stands at ₹83,400 crore.