New Delhi: In a significant ruling, the Supreme Court on Monday dismissed pleas filed by telecom operators Vodafone Idea, Bharti Airtel, and Tata Teleservices seeking relief from their massive Adjusted Gross Revenue (AGR) dues. A bench of Justices J B Pardiwala and R Mahadevan termed the petitions “misconceived” and upheld the 2020 judgment that fixed the dues.
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Vodafone Idea Faces Existential Threat
Vodafone Idea (Vi), already under severe financial stress, had requested a waiver of over ₹45,000 crore, warning the government that it might not survive beyond FY2025-26 without intervention. The company indicated it could approach the National Company Law Tribunal (NCLT) for insolvency if further support isn’t granted. Despite a ₹26,000 crore equity infusion and the government holding a 49% stake, Vi has failed to secure bank funding.
The company warned that if it collapses, the government’s equity could turn worthless, with ₹1.18 lakh crore in spectrum dues at risk.
Airtel, Tata Also Denied Relief
Bharti Airtel and its subsidiary Bharti Hexacom sought relief from ₹34,745 crore in penalties and interest, claiming they weren’t disputing the dues but only seeking relief on an “equitable basis.” Tata Teleservices was also part of the group seeking similar concessions. However, the top court said it found no merit in any of the petitions.
Market Reaction: Vodafone Shares Tank 10%
Following the verdict, Vodafone Idea’s stock plunged over 10%, hitting a low of ₹6.48, while Airtel also saw a slight dip. The negative sentiment dragged the broader telecom index lower on the day.
AGR Dues Remain a Burden
Vodafone Idea’s annual AGR payment is nearly double its ₹9,200 crore operational cash flow, making the dues unsustainable. So far, the company has paid around ₹8,000 crore, but the total demand still stands at ₹1.95 lakh crore, with the government yet to recover a major portion.
DoT, SC Stand Firm
The Department of Telecommunications (DoT) had earlier refused concessions citing the 2020 Supreme Court ruling. With this fresh rejection from the apex court, telecom firms now have limited legal options left.
This ruling puts increased pressure on Vodafone Idea to find new funding or risk collapse — a development that could reshape the Indian telecom landscape.
