SC allows Centre to consider full relief on Vodafone Idea's AGR dues

The apex court stated that Vodafone Idea had sought relief on both additional AGR dues and the reassessment of pending dues, adding that the government is free to consider relief on both

In a relief for Vodafone Idea (Vi), the Supreme Court on Monday clarified that the Centre could consider granting relief on all of the telecom operator’s adjusted gross revenue (AGR) dues, CNBC-TV18 reported.

 

The apex court stated that the company had sought relief on both additional AGR dues and the reassessment of pending dues, adding that the government is free to consider relief on both, the report added.

 

The clarification comes a week after a Bench led by Chief Justice of India B R Gavai, along with Justices K Vinod Chandran and Vipul M Pancholi, allowed the Centre to reassess Vi’s AGR dues. “We clarify that this falls within the Union’s policy domain, and there is no reason to prevent the government from proceeding accordingly,” the Bench observed. However, it did not specify whether the reassessment would cover only the telco’s additional dues of ₹9,450 crore or its total outstanding AGR liability of roughly ₹83,400 crore.

 

 

Background

Vi moved the Supreme Court in September seeking a comprehensive reassessment of its AGR liabilities up to 2016–17 and a review of additional demands raised by the Department of Telecommunications (DoT) for periods already settled under the court’s 2020 ruling. Vi also sought a waiver of interest and penalties, arguing that no default occurred since the principal amount had not been finalised. The telco’s AGR dues, fixed at ₹58,254 crore in 2020, have now grown to ₹83,400 crore. The DoT has also raised an additional demand of ₹9,450 crore, of which ₹5,606 crore relates to 2016–17.

 

Former chief executive Akshaya Moondra said in August that resolving the AGR issue was essential for securing bank funding. Vi, which raised ₹18,000 crore through a follow-on public offer in 2024, has been seeking further capital from non-banking financial institutions and has outlined a capital expenditure plan of ₹50,000–55,000 crore over three to five years.

 

The Supreme Court’s clarification on AGR dues came as a major relief for Vi, which has around 202.8 million subscribers. Following the announcement, the company’s shares jumped nearly 10 per cent on Monday.