Supreme Court allows govt to offer relief on all Vodafone Idea dues

The Supreme Court on Monday modified its earlier order of October 27, allowing the Centre to take a call on the entire adjusted gross revenue (AGR) dues of Vodafone Idea (Vi) instead of just the additional demand of ₹9,450 crore, of which ₹5,606 crore pertains to 2016-17. The apex court stated that the government could go ahead with a comprehensive reassessment and reconciliation of Vi’s AGR dues up to the financial year 2016-17.

The modified order is a sign of relief for the financially stressed telco, in which the government holds around 49 per cent stake. Reacting to the order, the telco’s stock rose as much as 9.9 per cent during the day to hit an upper price band of ₹9.6 per share. The counter has risen 21 per cent this year, compared to a 9 per cent advance in the benchmark Nifty 50. Vi’s market capitalisation rose to ₹1.04 trillion.


A detailed order copy, which will clarify whether the latest ruling will extend to other telecom companies as well, is expected to be uploaded by Tuesday.

Speaking to Business Standard, Vodafone Idea’s counsel Mahesh Agarwal said the company would make its representation to the government once the order is uploaded.

“There were errors in the calculator used for AGR dues. The principal amount may go down once the figures are reconciled,” he said.

On October 27, a Division Bench of Chief Justice of India Justice B R Gavai and Justice K Vinod Chandran had said the central government was free to reconsider Vi’s plea to set aside the additional demand of ₹9,450 crore raised by the Department of Telecommunications (DoT).

On October 27, a Division Bench of Chief Justice of India Justice B R Gavai and Justice K Vinod Chandran had said the central government was free to reconsider Vodafone Idea’s plea to set aside the additional demand of ₹9,450 crore raised by the Department of Telecommunications (DoT).

It was, however, unclear whether the court’s go-ahead was to be applied only to the additional demand raised or to the entire AGR dues owed by Vodafone Idea. In 2020, the Supreme Court had upheld the DoT’s calculation of the telco’s AGR dues up to 2016-17, ruling out any further recalculation. Vodafone Idea’s liabilities were pegged at ₹58,254 crore then, a figure that has since risen to ₹83,400 crore.

In its latest petition, the company had said the DoT had raised an additional demand of ₹9,450 crore, of which ₹5,606 crore pertained to 2016-17. The telco is currently required to make annual payments of ₹18,000 crore starting March 2026. In its earlier order last Wednesday, the court had permitted the government to reassess Vodafone Idea’s AGR dues only to the extent of additional demands raised up to FY17, clarifying that the relief was confined to the company.

The Bench had then observed that “in the peculiar facts of this case, we find that there shall be no impediment in the Union of India reconsidering the issue and taking an appropriate decision in accordance with law,” adding that the matter fell “within the policy domain of the Union of India.”

It said that if the government, “keeping in view the larger public interest, desires to reconsider the issue, there is no reason to restrain or prevent it from doing so.”

However, it also noted that “the prayer in the petition itself restricts its claim only to the additional AGR demand raised by the respondent for the period up to the financial year 2016-17.”

The order came in response to Vodafone Idea’s petition challenging the DoT’s additional demand of ₹9,450 crore, including ₹5,606 crore for the period up to 2016-17. The telco had sought a comprehensive reassessment of its AGR dues for that period and a recalculation of its liabilities, along with a waiver of interest and penalties, arguing that several components of the dues were not finalised.