Supreme Court Allows Centre to Review Vodafone Idea’s AGR Dues, Shares Jump 9%

The Supreme Court on Monday permitted the central government to reassess the adjusted gross revenue (AGR) dues owed by Vodafone Idea, offering a potential reprieve to the cash-strapped telecom operator. The decision prompted a sharp rally in the company’s stock, which surged over 9% to ₹10.53 on the BSE.

A bench comprising Chief Justice B.R. Gavai and Justice K. Vinod Chandran ruled that there was “no legal restriction” preventing the government from reviewing the dues, adding that the matter falls within the Centre’s policy domain. The verdict effectively allows the Department of Telecommunications (DoT) to revisit and reconsider the total amount owed without court interference.

Vodafone Idea has contested a fresh DoT demand of ₹9,450 crore — including ₹6,675 crore attributed to Vodafone Group and ₹2,774 crore to Idea Cellular — for the period before and after their merger. The company argued that these assessments included miscalculations and sought relief from additional penalties and interest.

Currently, Vodafone Idea’s total AGR liabilities stand at around ₹83,400 crore, with yearly payments of nearly ₹18,000 crore due from March 2026. Factoring in accumulated interest and penalties, its total exposure could reach nearly ₹2 trillion.

In its plea, the telecom firm contended that the 2020 Supreme Court judgment on AGR did not mandate penalties for pending calculations and urged the government to re-examine its claims.

The ruling is seen as a lifeline for Vodafone Idea, which has been struggling to reduce debt and sustain operations amid stiff competition from Reliance Jio and Bharti Airtel. The Centre now has the flexibility to introduce a policy-based review, potentially easing the financial burden on the company while balancing government revenue concerns.