Supreme Court Boosts Vodafone Idea: Govt To Revisit AGR Dues, Stock Soars Nearly 9%

In a major relief for Vodafone Idea, the Supreme Court on Monday allowed the Centre to reconsider the additional adjusted gross revenue (AGR) demands raised by the Department of Telecommunications (DoT) for the period up to FY 2016-17. 

The court took note of the government’s submission that, as a 49% stakeholder in the company, it is willing to re-examine the issue in the interest of policy and the telco’s 20 crore customers. 

 Vodafone Idea Share Price Today 
Following the verdict, Vodafone Idea’s shares jumped nearly 9% to ₹10.46 on the BSE. On the BSE, the stock opened at ₹9.63, hit a high of ₹10.57, and touched a low of ₹9.27. At the time of writing, it was trading at ₹10.11, up ₹0.49 or 5.09% at 12:19 a.m. 

 Vodafone Idea Share Price History 

Over the past decade, the stock has lost 88.12% of its value, while in the last five years, it has gained 15.81%. In the past two years, it declined by 7.08%, but over the last one year, it rose 31.81%. The upward momentum continued, with gains of 35.34% in the past six months, 40.22% in the last three months, 15.81% over the previous two months, and 12.96% in the past week.

A bench led by Chief Justice of India B.R. Gavai delivered the order after hearing Solicitor General Tushar Mehta, who informed the court that the government had infused 49% equity into the telecom company. He explained that the decision was driven by concerns for more than 20 crore consumers, as per media reports. 

Clarifying the scope of the relief, the Chief Justice stated: “We clarify that this lies within the policy domain of the Union. There is no reason why the Union should be prevented from acting in this manner. With that view, we dispose of the writ petition.”

The Supreme Court emphasized, however, that the order was being passed only in light of the specific facts and circumstances of the case — particularly because the government had infused equity in the company and had acted in the interest of Vodafone Idea’s 20-crore consumer base.

A long legal battle over AGR dues
Earlier, on October 13, the Supreme Court had adjourned Vodafone Idea’s plea seeking a waiver of interest, penalty, and interest on penalty on its adjusted gross revenue (AGR) dues raised by the Department of Telecommunications (DoT).