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Vodafone Idea Share Price: Vodafone Idea (VIL) shares rallied over 8% on Monday to hit a high of Rs 10.53 on the BSE after the Supreme Court allowed the Central government to reconsider the company’s plea related to additional adjusted gross revenue (AGR) demands.

The stock opened at Rs 9.63, up from the previous close of Rs 9.62, and surged sharply following the court’s decision.

A bench led by Chief Justice B.R. Gavai, along with Justices K. Vinod Chandran and Vipul M. Pancholi, heard the telecom operator’s plea seeking to quash the Department of Telecommunications’ (DoT) additional AGR demands for the period up to FY2016-17.

During the hearing, Solicitor General Tushar Mehta, representing the Centre, told the court that the government now holds a nearly 50% stake in Vodafone Idea, making its interest synonymous with public interest.

Mehta emphasised that since the government has infused equity into the company, the issue now concerns around 20 crore subscribers whose services could be affected if the firm suffers financially.

He urged the court to allow the government to re-examine the AGR issue, considering the “change in circumstances” and broader public implications.

Chief Justice Gavai accepted the Solicitor General’s argument, observing that there was “no impediment” in the Union government reconsidering the issue.

The court noted that such a step was justified given the peculiar facts of the case, where the government itself is a stakeholder.

The AGR dispute has been one of the longest and most contentious battles in India’s telecom history.

The matter pertains to how telecom companies calculate their adjusted gross revenue, the basis for determining licence fees and spectrum charges payable to the government.

Vodafone Idea has been seeking a reassessment of its dues, arguing that certain calculations were erroneous and led to duplication of entries. The DoT, on the other hand, had demanded around Rs 5,606 crore from the company for FY2016-17 as part of additional AGR dues.

In earlier rulings, the Supreme Court had dismissed telecom companies’ pleas to review or rectify calculation errors in AGR dues, asserting that the amounts determined were final.

However, Monday’s order marks a significant shift, as it allows the government to re-examine the matter — a move that could provide financial relief to Vodafone Idea.

Market experts say the Supreme Court’s stance signals a potential turning point for Vodafone Idea, which has been struggling with high debt and intense competition in the telecom sector.

The government’s willingness to reconsider the AGR dues could ease pressure on the company’s balance sheet and boost its ability to raise capital and expand network investments

Anubhav Maurya is a Senior Sub-Editor at Zee Business, focusing on the stock market, personal finance, corporate news, and related sectors.

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