Why in News?
The Supreme Court allowed the Centre to reconsider its additional Adjusted Gross Revenue (AGR) demand from Vodafone Idea for FY 2016–17, after the government said circumstances had changed due to its 49% equity stake and the public interest of 20 crore consumers.
Description:
- Adjusted Gross Revenue (AGR) is the revenue used by the Department of Telecommunications (DoT) to calculate the license fee and spectrum usage charges payable by telecom operators in India.
- Defined by DoT: Includes both telecom revenues (calls, data, SMS, roaming, VAS) and non-telecom revenues (interest, rent, dividend, asset sales, forex gains).
- Exclusions: GST and revenue shared with other operators (like roaming charges).
Legal Background:
- Dispute began in the early 2000s over inclusion of non-core revenue.
- SC Verdict (2019): Upheld DoT’s definition; directed payment of ₹1.47 lakh crore in dues.
- SC (May 2025): Rejected pleas by Vodafone Idea, Airtel, Tata Teleservices for waiver of interest and penalties.
Significance:
- Strengthens government revenue.
- Strains private telecoms; led to sectoral reforms but limited relief.
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