Supreme Court Rejects Vodafone Idea’s AGR Dues Plea
Key Takeaways:
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Supreme Court rejects Vodafone Idea’s plea to waive interest and penalties on AGR dues.
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Similar pleas by Bharti Airtel and Tata Teleservices were also dismissed.
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Vodafone Idea warns it may approach NCLT for bankruptcy if no government support is extended.
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The verdict caused a sharp fall in Vodafone Idea’s share price.
Supreme Court Vodafone idea – What is the issue?
Vodafone Idea, one of India’s major telecom operators, has been struggling under the weight of massive AGR (Adjusted Gross Revenue) dues, including interest and penalties.
- The company filed a plea in the Supreme Court requesting relief on these additional charges.
Supreme Court Vodafone idea – Why is it in the news?
On May 19, 2025, the Supreme Court of India rejected the pleas filed by Vodafone Idea, Bharti Airtel, and Tata Teleservices, all seeking relief from their AGR dues.
The court called the petitions “poorly drafted” and said such pleas were unexpected from large multinational companies.
- Following the decision, Vodafone Idea’s stock price dropped significantly, raising fears about the company’s financial future.
- Similar pleas filed by Bharti Airtel and Tata Teleservices were also thrown out.
The company’s CEO, Akshay Moondra, warned:
“If we do not receive support from the government,
we will not be able to continue operating the company beyond FY26.”
Supreme Court Slams the Pleas
A bench comprising Justice J.B. Pardiwala and Justice R. Mahadevan stated that the petitions were “poorly drafted” and unexpected from reputed multinational companies. Addressing senior advocate Mukul Rohatgi, representing Vodafone Idea, the bench expressed surprise at the nature of the petitions and decided to dismiss them.
Vodafone Idea had requested a waiver of ₹45,457 crore
Just a day before the verdict, Vodafone Idea had requested a waiver of ₹45,457 crore in order to remain operational beyond FY26.
- The company claimed that without government support, it would not be able to continue its operations and might be forced to seek bankruptcy protection through NCLT (National Company Law Tribunal).
Vodafone Idea Company’s Financial Struggle
Vodafone Idea has already paid approximately ₹8,000 crore but continues to object to the compound interest being charged.
- It has not opposed the principal AGR amount of ₹12,797 crore but argues that the additional interest and penalties are financially devastating.
Government Support and Stake in Vodafone Idea
The company currently owes the government around ₹1.95 lakh crore in spectrum dues.
- If Vodafone Idea goes bankrupt, the government risks losing ₹1.18 lakh crore in pending payments.
The court made it clear that its decision doesn’t block any support the government wishes to extend to telecom companies. However, it refused to issue any directive to waive off the dues.
The plea also highlighted that Vodafone Idea is not asking for a review of the previous Supreme Court ruling on AGR but only seeking relaxation on interest-related components, claiming that such support is essential to keep competition alive in the telecom sector.
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