Cabinet clears major relief package for Vodafone Idea:AGR dues frozen at ₹87,695 crore, with deferred payments till FY41

The Union Cabinet has approved a crucial relief package for debt-laden telecom operator Vodafone Idea, providing much-needed clarity on its long-standing Adjusted Gross Revenue (AGR) liabilities, PTI reported on Wednesday, citing sources. Govt freezes AGR dues at ₹87,695 crore, payments deferred till FY41 As part of the decision, the government has frozen Vodafone Idea’s AGR dues at ₹87,695 crore, with the payment scheduled over a 10-year period from FY32 to FY41, according to sources. SC allowed limited re-examination of Vodafone Idea’s AGR dues On October 27, the Supreme Court allowed re-examination of Vodafone Idea’s AGR dues following the telecom operator’s request for a review of its liabilities. The Court permitted the Central government to reconsider the company’s AGR dues. SC clarification: Relief applies only to Vodafone Idea, not other telcos “Our order dated October 27 has been modified only to the extent that the Central Government may re-examine Vodafone Idea’s entire AGR dues up to 2016–17. The rest of the order remains unchanged,” a two-judge bench comprising Chief Justice B.R. Gavai and Justice K. Vinod Chandran stated in a written order dated November 3, clarifying that the relief was specific to Vodafone Idea and does not extend to any other telecom companies. Why Vodafone Idea approached the Supreme Court Vodafone Idea had approached the Supreme Court seeking a review of its AGR calculations, arguing that certain components had been wrongly included while computing its dues. Company sought waiver of interest, penalties and challenged ₹9,450 crore demand The company requested relief from interest and penalties and sought a fresh recalculation of its overall liability. In its petition, Vi also contested an additional demand of ₹9,450 crore raised by the government.