In a significant development, the Supreme Court has granted permission for the government to address the concerns of Vodafone Idea Ltd regarding adjusted gross revenue (AGR) dues without the court’s interference. This decision comes as a relief for the telecom operator, allowing a reassessment of the AGR dues demand.
The bench, comprising Chief Justice B.R. Gavai and Justice K. Vinod Chandran, emphasized that decisions regarding relief for the telecom operator are a policy matter. The court highlighted the altered circumstances where the government holds a substantial equity stake in Vodafone Idea, impacting the interests of over 200 million consumers.
Following the court’s ruling, Vodafone Idea shares surged nearly 10% on October 27, reaching a one-year high of Rs 10.57 on the NSE. The Centre’s willingness to reconsider the telco’s AGR request, coupled with the Supreme Court’s endorsement of the Union’s authority in this policy domain, fueled the positive market response.
The apex court’s directive underscores the unique circumstances of this case, particularly considering Vodafone Idea’s significant equity stake and its vast customer base. Solicitor General Tushar Mehta, representing the central government, has not yet presented a resolution for Vodafone Idea but has been empowered by the Supreme Court to explore potential relief measures for the telecom company.
