IDEA

Challenges Revised AGR Dues in Supreme Court

(Vi) has filed a writ petition in the Supreme Court to challenge the Department of Telecommunications' (DoT) latest calculation of its Adjusted Gross Revenue (AGR) dues. The company is seeking to have the additional tax demands set aside, arguing they exceed the scope of the Supreme Court's previous ruling. → Disputed Tax Demands: The DoT has raised an additional AGR demand of ₹2,774 crore for FY18-19, which Vi is contesting, claiming that certain amounts have been counted twice. The company's petition seeks a recalculation of its dues starting from the period before FY17. This fresh demand, coming on top of an earlier ₹5,960 crore claim, poses a significant financial strain on Vi. → Financial Strain and Fundraising Efforts: The revised demands are occurring while Vi is in the process of raising funds to strengthen its 4G network and accelerate its 5G rollout. The company argues that these new liabilities will hinder its efforts to improve its financial health and operational capabilities. → The Larger Context: The revised dues fall within the government's moratorium on AGR payments, which is set to expire on March 31, 2026. The Supreme Court is expected to hear the petition in the coming weeks. The outcome of the case will be critical for Vodafone Idea, as it will determine the extent of its liabilities and its ability to proceed with its crucial fundraising and network expansion plans.