The Supreme Court will hear Vodafone Idea’s plea challenging Rs 9,450 crore AGR dues from the government on October 27, right after Diwali, as the telecom giant seeks relief from pre- and post-merger financial liabilities.
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NEW DELHI: The Supreme Court of India is set to hear a plea by telecom major Vodafone Idea challenging additional government demands on Adjusted Gross Revenue (AGR). The hearing comes amid growing scrutiny of AGR-related dues, which have been a point of contention between the telecom sector and the government for years.
ALSO READ: Supreme Court Puts Off Vodafone Idea’s Rs 5,606 Crore AGR Dues Hearing to October 13
In a brief exchange in Court, Senior Advocate (SG) representing Vodafone Idea seemed concerned about the scheduling of the case, saying:
“I think it’s my bad day today.”
To this, the Chief Justice of India (CJI) responded reassuringly:
“No, you don’t.”
Seeking clarity on timing, the SG asked:
“Can it be heard on Thursday or the first day after reopening?”
The CJI clarified, emphasizing the Court’s post-festive schedule:
“First day after reopening? Keep it on the first day after Court resumes post Diwali.”
Last week, a bench comprising Chief Justice B.R. Gavai and Justice K. Vinod Chandran adjourned the matter on a request by Solicitor General Tushar Mehta, who sought time until October 13. The Court had previously deferred the hearing on September 26, following a plea by the government to explore solutions regarding Vodafone Idea’s AGR dues.
“In light of the larger public interest, the Government has also infused 49% equity. Some solution may be required, subject to this court’s approval,”
Solicitor General Mehta told the Court.
The bench responded firmly:
“There has to be some finality to these proceedings.”
– CJI B.R. Gavai, Justice Vinod Chandran & NV Anjaria
Vodafone Idea’s petition challenges the fresh AGR demand raised by DoT, contending that a substantial portion of it relates to the pre-FY17 period, which the Supreme Court had already settled in its March 18, 2020 ruling. That judgment had locked AGR dues for the pre-FY17 period, ruling that no reassessment would be permissible.
The telecom operator’s plea further highlights that out of the total Rs 9,450 crore demand, Rs 2,774 crore pertains to the post-merger entity (FY18-19), while Rs 5,675 crore relates to the pre-merger Vodafone Group. Vodafone Idea has raised concerns about duplication and incorrect calculations in the revised DoT demand, seeking a comprehensive reassessment.
“The substantial liability created due to the AGR demand threatens the very existence of the company and the livelihood of thousands of employees,”
the petition states.
The stakes are high: Vodafone Idea serves nearly 198 million subscribers and employs over 18,000 people. The company is simultaneously fundraising to bolster 4G expansion and accelerate its 5G rollout to stay competitive with Reliance Jio and Bharti Airtel.
Once the four-year moratorium on AGR payments concludes on March 31, 2026, Vodafone Idea will have to pay Rs 16,428 crore for AGR dues along with Rs 2,641 crore for spectrum instalments by June 2026. The total outstanding liabilities—including AGR dues, deferred spectrum payments, interest, and penalties—are estimated at around Rs 2 trillion through FY34.
Background
AGR represents the portion of a telecom company’s gross revenue considered for regulatory payments to the government. This includes license fees, spectrum usage charges, and other levies. Vodafone Idea’s petition points out that a substantial portion of the ₹9,450 crore demand relates to periods already settled by the Supreme Court in 2020 for pre-FY17 dues.
According to Vodafone Idea:
- ₹5,675 crore relates to pre-merger Vodafone Group liabilities.
- ₹2,774 crore relates to the post-merger entity, Vodafone Idea Ltd.
- Approximately ₹5,606 crore corresponds to financial years up to 2016-17, which the Supreme Court had ruled could not be reassessed.
The telecom company argues that the DoT’s latest calculations include duplication of amounts and incorrect inclusion of revenues, such as hotel business revenue, which inflates the AGR dues.
Case Title:
VODAFONE IDEA LTD. AND ANR. V UNION OF INDIA
W.P.(C) No. 882/2025
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