Supreme Court rejects telecom AGR dues plea

New Delhi

The Supreme Court has dismissed petitions by Bharti Airtel, Vodafone Idea, and Tata Teleservices, which sought relief from paying interest and penalties on adjusted gross revenue (AGR) dues. The court called the petitions “misconceived.”

Earlier, the government rejected Vodafone Idea’s plea for fresh relief. The Department of Telecommunications (DoT), in a letter dated April 29, said further concessions couldn’t be given because of a 2020 court ruling. That ruling allowed telecom companies ten years to clear their dues.

Vodafone Idea asked for a waiver of over ₹45,000 crore to stay afloat. Bharti Airtel and its unit Bharti Hexacom wanted a waiver of ₹34,745 crore. DoT reminded that Vodafone Idea had already received help when the government converted ₹36,950 crore of spectrum dues into equity, gaining 49% stake in the company.

Earlier, the government asked the court to allow 20 years for repayment, but that plea was denied.

Vodafone Idea’s legal battles over AGR date back to a 2019 ruling that expanded the AGR definition, greatly increasing dues. Telecom firms challenged the calculations, saying there were errors, but the court rejected that too. Vodafone Idea filed another plea in 2024, but it was dismissed.

Despite financial troubles, Vodafone Idea launched 5G services in Delhi NCR on May 15. This follows earlier rollouts in Mumbai, Patna, and Chandigarh. The company plans to bring 5G to all 17 priority circles by August.

Vodafone Idea, a joint venture of Vodafone Group (UK) and Aditya Birla Group (India), continues to struggle under massive debt, despite the government’s partial support through equity conversion. The company hopes the 5G rollout will boost recovery.