The telecom service providers had approached the Supreme Court asking for a waiver of massive AGR-related liabilities. However, the court refused to give any relief.
NEW DELHI: The Supreme Court on Monday rejected the pleas of Vodafone Idea, Bharti Airtel, and Tata Teleservices seeking a waiver of Adjusted Gross Revenue (AGR) dues.
A two-judge bench comprising Justice J B Pardiwala and Justice R Mahadevan dismissed the petitions, calling them “misconceived”.
The telecom service providers had approached the Supreme Court asking for a waiver of massive AGR-related liabilities. However, the court refused to give any relief.
The bench clearly stated that the pleas were “misconceived”, thus shutting down any hopes of a legal resort.
Vodafone Idea (Vi), which is already under severe financial stress, was seeking relief from AGR dues amounting to over Rs. 45,000 crore. According to a report by CNBC-TV18, the company recently warned the Indian government that it “will not be in a position to continue operations beyond FY26” if it does not receive more state support.
In its communication to the government, Vodafone Idea further said it may be forced to approach the National Company Law Tribunal (NCLT) for insolvency proceedings if urgent financial help is not extended. Despite a Rs. 26,000 crore equity infusion and the conversion of the government’s dues into equity, the company said it has not received any backing from banks.
Vodafone Idea stated: “Will not be in a position to continue operations beyond FY26” unless there is fresh support from the government.
The telco added that “will not be able to raise bank funding” without government intervention.
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Vodafone Idea also highlighted the possible risk to the government’s 49% equity stake in the company. It warned that this stake might lose all value if the company enters insolvency, which would mean a total loss on the Rs. 1.18 lakh crore of spectrum dues already converted into equity.
The company stressed that if the situation worsens, “the value of that stake could fall to zero”.
Bharti Airtel, along with its subsidiary Bharti Hexacom, had also approached the court. They requested a waiver of Rs.34,745 crore in dues related to interest and penalties. In their plea, they mentioned that they were not challenging the court’s AGR ruling but were simply asking for relief on an equitable basis.
The company pointed out that the Supreme Court’s AGR ruling on September 1, 2020, had “placed significant financial strain on the telecom sector”. Therefore, they sought a waiver only of the interest and penalties, not the principal amount.
Airtel clarified: “We are not challenging the court’s decision but seeking relief from the penalties and interest.”
Case Name : VODAFONE IDEA LTD. AND ANR vs UNION OF INDIA W.P.(C) No. 505/2025, BHARTI AIRTEL LIMITED AND ORS vs UNION OF INDIA W.P.(C) No. 512/2025
