Supreme Court Rejects Vodafone Idea's AGR Waiver Plea

SC Rejects Telecom Operators Plea: The Supreme Court on Monday, May 19 dismissed the telecom major Bharti Airtel Ltd, Vodafone Idea Ltd. and Tata Teleservices plea on their adjusted gross revenue dues, days after the companies filed a fresh petition, calling them 'misconceived.'

The bench consisting of Justices J.B. Pardiwala and R. Mahadevan said the issue falls under the executive’s domain and the court would not intervene.

Amid insolvency fears mounting for Vodafone Idea, the court told the telecom operator, ‘Don’t make us a party' during the hearing. However, Vodafone Idea argued that it had already paid around Rs 50,000 crore and highlighted that the government now holds nearly 50 per cent stake in the company. The court responded that while the government is free to extend support, the Supreme Court cannot compel it to do so.

The bench also deemed the petition under scrutiny as both “shocking” and “misconceived".

Further, the court directed that telecom firms to explore other legal remedies but not via the Supreme Court.

The Department of Telecommunications, in a letter stamped April 29, mentioned the request for further concessions on AGR liabilities “cannot be considered” as a result of the top court's 2020 ruling in the case. The ministry further noted that Vodafone Idea had already sought and received partial support when the government converted spectrum-related dues worth Rs 36,950 crore into equity, increasing its stake in the company to 49 per cent. Vodafone Idea had approached the Supreme Court once again earlier this month, seeking relief of over Rs 45,000 crore in relation to its AGR dues. The matter is scheduled for hearing later on Monday.

This marks the latest chapter in a long-running dispute over the definition and calculation of AGR, which began with a 2019 ruling. In 2020, the top court fixed a 10-year timeline for telcos to clear dues. The DoT had earlier urged the court to extend the repayment window to 20 years, but the court did not accept the proposal.

Telecom companies later challenged the calculations, citing arithmetic errors, but the Supreme Court dismissed those claims. Vodafone Idea filed a curative petition in July 2024, which was rejected in September 2024.