India, Oct. 27 -- The Supreme Court of India has allowed the central government to reconsider billions in past dues of Vodafone Idea Ltd., rekindling revival hopes for what was once India's largest telecom operator.

The matter of Vodafone Idea's AGR dues falls within the purview of the Union of India, a Supreme Court bench headed by Chief Justice of India B.R. Gavai said on Monday. "We clarify that this is in the policy domain of the Union. There is no reason as to why the Union should be prevented from doing so," Gavai said. "With that view of the matter, we dispose of the writ petition."

The Supreme Court's order came after Solicitor General of India Tushar Mehta said that the government picked up a 49% equity stake in the company in ...