In a significant development for the Indian telecom sector, the Supreme Court of India has modified its October 27, 2025 order, providing relief to Vodafone Idea Ltd. in the long-standing Adjusted Gross Revenue (AGR) case. The amendment, made orally on November 3, comes as a response to a mention by senior advocate Mukul Rohatgi, representing Vodafone Idea.

Key Points of the Amendment

1. Liability Limitation: The court has limited the AGR claim against Vodafone Idea to additional demands raised up to the financial year 2016-17.

2. Reassessment Permitted: The amendment allows for reassessment and reconciliation of all AGR dues, including interest and penalty, up to FY 2016-17.

3. Partial Modification: The changes were made specifically to paragraph six of the original order, while all other parts of the October 27 order remain unchanged.

Implications for Vodafone Idea

This amendment could potentially provide significant relief to Vodafone Idea, one of India's leading telecom operators. By capping the liability period to FY 2016-17, the company may see a reduction in its overall AGR dues. However, the exact financial impact will only be clear after the reassessment and reconciliation process is completed.

Background on the AGR Issue

The AGR issue has been a contentious topic in the Indian telecom sector for several years. It revolves around the definition of AGR, on which telecom companies pay license fees and spectrum usage charges to the Department of Telecommunications (DoT).

Looking Ahead

While this amendment provides some clarity and potential relief for Vodafone Idea, the telecom sector will be watching closely as the reassessment process unfolds. The outcome could have far-reaching implications not just for Vodafone Idea, but for the entire telecom industry in India.

As the situation develops, stakeholders will be keen to see how this impacts Vodafone Idea's financial health and its ability to compete in the highly competitive Indian telecom market.

Vodafone Idea has issued a clarification regarding reports about US private equity firm TGH discussing a potential $6 billion investment in the company. The telecom operator stated it will follow SEBI rules in relation to its fundraising efforts.

This development comes as Vodafone Idea shares jumped 10% to ₹9.60 following a crucial clarification from the Supreme Court regarding the scope of relief on adjusted gross revenue (AGR) dues. The Indian government is considering offering limited relief to Vodafone Idea on its additional AGR dues.

Supreme Court Clarification

• The court confirmed that the government can consider relief on both additional AGR dues and reassessment of all pending dues.
• This resolves uncertainty from the October 27 hearing about whether relief applied only to additional AGR dues worth ₹9,500 crore or the entire pending AGR dues of nearly ₹80,000 crore.
• The Supreme Court noted that given the Centre's stake in the telecom company and potential impact on 20 crore consumers, there is no impediment for the government to reconsider the issue.

Potential Government Relief

• Scope of Relief: Limited to ₹9,450 crore additional demand for the period up to financial year 2017
• Basis: Supreme Court's October 27 ruling allowing reassessment of discrepancies in the Department of Telecommunications' (DoT) demand calculations
• Current Status: DoT is consulting with concerned ministries and the Solicitor General's office

Vodafone Idea's AGR Situation

Recent Developments

• Vodafone Idea filed an amended plea in September against the DoT's fresh demand
• The company requested recalculation of AGR liability
• The government is examining the implications of the Supreme Court's order

This potential relief, if granted, could provide some financial respite to Vodafone Idea, which has been grappling with significant AGR dues. The clarification from the Supreme Court has positively impacted investor sentiment, as reflected in the surge in share price. However, it's important to note that the relief is still under consideration and limited in scope. The telecom sector and investors will be closely watching the government's final decision on this matter.

Meanwhile, Vodafone Idea's clarification regarding the reported discussions with TGH about a potential $6 billion investment adds another layer to the company's ongoing financial strategies. As the company commits to following SEBI rules in its fundraising efforts, stakeholders will be keenly observing how these developments unfold and impact the telecom operator's future.