Supreme Court Rejects Fresh Plea By Vodafone Idea, Airtel, Tata Teleservices On AGR Dues

On May 19, 2025, the Supreme Court of India dismissed fresh pleas filed by telecom operators Vodafone Idea Ltd, Bharti Airtel Ltd, and Tata Teleservices Ltd seeking relief from their pending adjusted gross revenue (AGR) dues. The court termed the petitions "misconceived," reinforcing its earlier stance on the matter.

A bench comprising Justices J.B. Pardiwala and R. Mahadevan observed that the issue falls within the executive's domain and the judiciary would not intervene. "Don't make us a party," the bench told Vodafone Idea's counsel during the hearing.

Vodafone Idea argued that it had already paid over Rs 50,000 crore and highlighted that the government now holds nearly a 50% stake in the company. However, the court responded that while the government is free to extend support, the judiciary cannot compel it to do so. The operators were advised to explore other legal remedies but not through the apex court.

The Department of Telecommunications (DoT), in a letter dated April 29, maintained that it could not consider any further concessions on AGR liabilities due to the Supreme Court's 2020 final judgment. The DoT noted that Vodafone Idea had already received partial relief when the government converted spectrum-related dues worth ₹36,950 Cr into equity, increasing its holding in the company to 49%.

The AGR Dispute

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.

Despite this, Vodafone Idea filed a fresh plea earlier this month seeking relief of over ₹45,000 Cr, citing financial stress and government equity holding as grounds. Airtel and Tata Teleservices joined the petition, but the court declined to entertain any further reconsideration.

Breakup of AGR Dues and Waiver Requests:

• Total AGR Liability (as of March 31, 2025): Rs 83,400 crore

  Principal: Rs 12,797 crore

  Interest: Rs 28,294 crore

  Penalty: Rs 6,012 crore

  Interest on Penalty: Rs 11,151 crore

  Waiver Sought: Rs 45,457 crore (comprising interest, penalty, and interest on penalty)

• Breakup of AGR Waiver sought by Bharti Airtel

  Principal Amount: Rs 9,235 crore

  Interest: Rs 21,850 crore

  Penalty: Rs 3,995 crore

  Interest on Penalty: Rs 8,900 crore

  Total AGR Dues: Rs 43,980 crore

And last but not the least, reports suggest that Tata Teleservices, which has an estimated AGR liability of around Rs 16,800 crore, also saw its plea for waiver of interest and penalties dismissed by the Supreme Court, in line with the court's firm stance on the matter.

The Supreme Court's dismissal effectively shuts the door on any relief through judicial intervention, putting the ball back in the government's court.