Centre to seek legal advice on SC order allowing Vi AGR dues review

The telecom department will review the Supreme Court's order permitting reassessment of Vodafone Idea's AGR dues for FY16-17, as the government weighs legal options and next steps

The department of telecommunications will take legal advice on the steps the government can take on the Supreme Court’s order related to additional adjusted gross revenue (AGR) demands raised against Vodafone Idea, a senior official said, seeking anonymity. 

 

“The government will take legal advice. As is the case with any such matter, we will consult our legal experts before taking further steps,” the official said.

 

According to the details of the order, issued on Wednesday evening, the Supreme Court has allowed the government to reassess Vi’s AGR dues applied to the additional demands raised for the period up to financial year 2016-17, and that it was limited only to the company.

 

 

Vodafone Idea’s stock fell by more than 6 per cent on Thursday to ₹8.75.

 

Officials in the know said that Vodafone Idea will have to formally ask for the kind of relief it wants but the extent of the relief and the course of action will depend on the apex court’s order.

 

They added that the details of the SC’s judgement will hold the key to enabling the government to proceed, while deliberations between the third largest carrier and the government, which has a 49 per cent stake in the carrier, will be crucial.

 

The court noted that “in the peculiar facts of this case we find that there shall be no impediment in the Union of India reconsidering the issue and taking an appropriate decision in accordance with law,” and that the matter fell “within the policy domain of the Union of India and if, in the peculiar facts and circumstances of the case, the Union of India, keeping in view the larger public interest, desires to reconsider the issue, there is no reason to restrain or prevent it from doing so.”

 

However, the order also said, “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.”

 

The order was in response to Vi’s petition against DoT that sought for quashing of additional demand of ₹9,450 crore raised by the Centre, of which ₹5,606 crore related to the period till 2016-17.

 

Vi had sought for a comprehensive reassessment of its AGR dues for periods up to 2016-17, as well as a recalculation of liabilities.

 

It had also sought a waiver of interest and penalties on the grounds that several components of the dues were not finalised. The telco currently owes ₹83,400 crore to the government in AGR dues.