May 18:
Sahil Aggarwal (Editor-in-Chief)
Vodafone Idea and Bharti Airtel Move Supreme Court Seeking AGR Dues Relief
In a significant move that could impact the future of India’s telecom sector, both Vodafone Idea and Bharti Airtel have approached the Supreme Court seeking relief from Adjusted Gross Revenue (AGR) dues. These petitions aim to reduce the heavy financial burden imposed by interest, penalties, and interest on penalties — liabilities that are threatening the stability of private telecom operators.
Vodafone Idea Seeks Waiver of ₹45,000 Crore
Vodafone Idea has filed a fresh petition with the apex court, requesting a waiver of AGR dues amounting to approximately ₹45,000 crore. The majority of this sum comprises interest, penalties, and interest on penalties — not the core dues themselves. According to internal sources, Vodafone Idea has stressed that these accumulated liabilities could severely undermine its ability to continue operations.
The Supreme Court is expected to hear this plea on May 19, 2025. The company argues that the financial stress not only affects its services but also endangers the health of the telecom sector as a whole, which is already battling low tariffs, high competition, and shrinking margins.
Bharti Airtel Also Files Petition
Following Vodafone Idea’s lead, Bharti Airtel, along with its subsidiary Bharti Hexacom, has also approached the Supreme Court. The telecom giant is seeking relief from ₹34,745 crore in dues linked to interest and penalty components of AGR calculations.
In its plea, Airtel clarified that it is not challenging the Supreme Court’s original ruling on AGR. However, it is seeking judicial intervention on the additional financial charges, which the company says go beyond the scope of operational feasibility and fair competition.
AGR Background and Legal Journey
The AGR dispute dates back to a 2019 Supreme Court judgment, which expanded the definition of AGR to include all revenues earned by telecom operators — not just those from core services. This widened scope significantly increased the dues owed by telcos to the Department of Telecommunications (DoT).
In earlier rulings, the Supreme Court had dismissed requests for recalculation or reassessment, further tightening the financial noose around telecom operators.
Sectoral Impact and Way Forward
These legal developments come at a time when the Indian telecom industry is striving for consolidation, digital expansion, and 5G rollout. A favorable verdict could ease the debt load and create breathing room for operators like Vodafone Idea, which is already struggling with mounting losses and declining market share.
The Supreme Court’s decision on these pleas will be crucial — not only for the companies involved but also for the overall investment climate and policy direction of the telecom industry.
