The apex court deferred the hearing after the government sought more time to present its position on AGR dues
The Supreme Court deferred the hearing of Vodafone Idea’s plea against an additional ₹9,450-crore adjusted gross revenue (AGR) demand from the government, after the Centre sought more time to present its position.
Shares of the beleaguered telecom operator were trading 6.25% higher at the time of writing.
Solicitor General Tushar Mehta, appearing for the government, told the bench that since the Centre now holds a significant stake in Vodafone Idea, a resolution was necessary in the interest of consumers. The court is expected to hear the matter again next Friday, September 26.
Vodafone Idea’s AGR Dues
The dispute stems from the Supreme Court’s March 2020 ruling, which finalized Vodafone Idea’s AGR dues up to FY17 based on the Department of Telecommunications’ (DoT) calculations and barred any reassessment.
Despite this, DoT has raised fresh demands covering FY18 and FY19. Vodafone Idea, in its petition filed on 8 September, argued that most of the new claim relates to periods already settled by the court.
Vodafone Idea argued that the revised calculation goes beyond the scope of the Court’s earlier ruling, which had locked in AGR liabilities up to FY17.
Of the total due, around ₹5,675 crore relates to the pre-merger Vodafone Group, while ₹2,774 crore affects the post-merger company. Vodafone Idea claims specific amounts have been duplicated in the DoT’s assessment and has sought a recalculation. It said nearly ₹5,606 crore of the demand had already been settled under the Court’s 2020 judgment.
The government currently owns 50% of Vodafone Idea, following the conversion of ₹53,083 crore of AGR dues into equity in 2023 and 2025.
Huge Debt
Vodafone Idea owes about ₹83,400 crore in AGR dues, with instalments of ₹18,000 crore annually starting March 2026. Its overall liabilities to the government are estimated at nearly ₹2 trillion, including penalties and interest.
The company warned that the additional demand could further strain its finances, at a time when it is working to raise capital, expand 4G coverage, accelerate its 5G rollout, and could impact the livelihoods of its 18,000 employees and services for its 198 million subscribers.
Stock Watch
Vodafone Idea’s stock has seen a significant rally over the past month, gaining more than 27%.
Retail sentiment has remained ‘bullish’ over the period on Stocktwits, having last been ‘neutral’ a month back.
The latest rally has pushed the stock into a positive territory in 2025, with year-to-date gains of around 4.5%.
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