Vodafone Idea AGR Case: SC Allows Government To Review Dues, A Timeline Of Events

In a major relief to Vodafone Idea, the Supreme Court on Monday allowed the government to review the company’s pending adjusted gross revenue (AGR) dues. In its plea, the telecom operator had asked for relief on both additional AGR dues and a reassessment of all pending dues.   

The apex court said that the government can review and re-evaluate the AGR dues up to the financial year 2016-17, including interests and penalties.  

For the telecom companies, the government uses AGR as a measure to calculate the licence fees and spectrum charges.

After the Supreme Court clarification, Vodafone Idea shares have remained in focus. On Tuesday, shares of the company rallied as much as 2.3% to hit an intraday high of Rs 9.76 apiece on the NSE. The stock also rallied 14% on Monday to hit an intraday high of Rs 9.96 apiece on the NSE, compared to its previous close of Rs 8.73.  

Vodafone Idea’s long-running AGR dispute pertains to pending due of nearly Rs 9,500 crore. Here’s a look at the timeline of the Vodafone Idea AGR case:

March 1999: The roots of the dispute go back to the New Telecom Policy of 1999, which introduced a revenue-sharing model between telecom operators and the government. Under this system, companies were to pay a portion of their revenue to the Department of Telecommunications (DoT). The disagreement began over the definition of AGR. The DoT maintained that it should include all sources of income, while telecom operators said that only revenue from core telecom services should be considered.

October 2019: The Supreme Court sided with the DoT, affirming its interpretation that AGR covered all types of revenue, including proceeds from the sale of assets and interest income. The verdict left telecom companies, including Vodafone Idea, burdened with financial liabilities.

July 2021: The apex court reinforced its earlier judgment, declaring that the figures computed and certified by the DoT were final and could not be revisited or reassessed by the operators.

October 2021: Following persistent lobbying from the industry, the government revised the definition of AGR to exclude non-telecom income. Though this amendment eased future obligations, it did not apply retrospectively. As such, it offered no relief for past dues that had already been locked in years of litigation.

May 2025: Vodafone Idea sought relief from cumulative AGR liabilities exceeding Rs 80,000 crore, citing financial strain. Around the same time, the Supreme Court dismissed petitions filed by major operators, including Bharti Airtel, Vodafone Idea and Tata Teleservices, which sought exemptions on interest, penalties and interest on penalties arising from AGR dues.

September 2025: On Sept. 8, Vodafone Idea approached the court again, contesting the DoT’s demand for an additional Rs 9,450 crore. The company also requested a waiver of interest and penalties. Initially, the Supreme Court scheduled the hearing for Sept. 19 but later deferred it to Sept. 26.

October 2025: The hearing was pushed further, first to Oct. 6 and then to Oct. 13, as the government sought more time. On Oct. 13, the Supreme Court adjourned Vodafone Idea’s plea for a waiver on interest and penalties linked to AGR dues. On Oct. 27, the court permitted the Union government to revisit and reassess the company’s AGR liabilities, acknowledging it as a matter of policy within the government’s purview.