Vodafone Idea Files Fresh Plea In Supreme Court Seeking Waiver Of AGR Penalty, Interest

Vodafone Idea Ltd. has filed a fresh petition before the Supreme Court, seeking waiver of penalty and interest on adjusted gross revenue demand of Rs 9,450 crore, sources told NDTV Profit on Monday.

The apex court will decide on the admission of the latest plea filed by the cash-strapped telecom firm.

This comes ahead of the scheduled Oct. 6 hearing before the top court, on a petition moved by the telco against the duplication of AGR dues.

The company had earlier petitioned the apex court, challenging the additional AGR demand of Rs 9,450 crore issued by the Department of Telecommunications, which was pending until the financial year 2019. However, the hearing for this was deferred by the Supreme Court to Oct. 6.

The telecom operator has argued that the demand goes beyond the scope of the apex court’s earlier ruling on AGR liabilities, as per reports. Of the total dues, Rs 2,774 crore pertains to the post-merger Vodafone Idea entity, while Rs 5,675 crore relates to liabilities of the pre-merger Vodafone Group.

Solicitor General Tushar Mehta who appeared on behalf of the government earlier this month, said the telecom department requires more time to present its side of the case.

Notably, in May 2025, the Supreme Court had rejected Vodafone Idea's plea for waiver of AGR interest and penalties.

The AGR issue dates back over a decade, involving a prolonged dispute between telecom companies and the government over the definition of adjusted gross revenue. In its 2019 ruling, the Supreme Court upheld the government's broader interpretation, which includes revenue from non-core operations. This dramatically increased the dues owed by several telecom operators.

In 2020, the apex court rejected any reassessment or recalculation of these dues and allowed the companies a 10-year window to pay them in installments, with interest.

The government has become the single largest shareholder in Vodafone Idea after acquiring shares worth Rs 36,950 crore in lieu of outstanding spectrum auction dues in March. Earlier, the government had acquired around 33% stake in 2023 in lieu of statutory dues worth over Rs 16,000 crore.

Vodafone Idea cumulatively owes more than Rs 83,000 crore in AGR dues to the government at present. Out of this, the company has sought a waiver on Rs 45,000 crore.