The Union Cabinet has on December 31 approved a plan to freeze adjusted gross revenue dues of Vodafone Idea Ltd at Rs 87,695 crore, rescheduling the repayment over FY2032–41, while also opening the door to a reassessment of the dues by a government-appointed panel. The Department of Telecommunications (DoT) will reassess the dues based on deduction-verification guidelines and audit findings, with a committee appointed by the government to determine the final payable amount. The ruling will be binding on both the company and the Centre.
This comes after the Supreme Court allowed the government to reassess the telco’s statutory dues earlier this year.
Of the AGR dues that Vodafone Idea owes to the government, annual payments of Rs 18,000 crore were supposed to start in March 2026. However, the company had approached the Supreme Court related to the AGR issue, and said that if it was not able to secure relief from the payments, it would pose a big question mark over its financial stability and jeopardise the government’s stake in the telco.
As part of the fresh relief package, the Cabinet has decided to freeze the AGR dues of Vodafone Idea as on December 31 at Rs 87,695 crore, with the payment amount being rescheduled over financial years 2031-32 and 2040-41. The AGR dues for FY18 and FY19 shall be payable by the telco over the period FY26 to FY31 without any change.
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