The Supreme Court on Monday deferred hearing Vodafone Idea Ltd’s plea challenging an additional ₹9,450-crore demand raised by the Department of Telecommunications (DoT) towards adjusted gross revenue (AGR) dues.
Senior lawyer Mukul Rohatgi appeared for Vodafone Idea, while Solicitor General Tushar Mehta represented the Centre. Both sides requested the court to list the matter for next Monday.
The case is now to be heard on 13 October.
Shares of Vodafone Idea traded at ₹8.47 apiece on the National Stock Exchange, down 3.97% from previous close.
Last week, Vodafone Idea filed an amended petition before the apex court seeking waiver of interest and penalties on its AGR dues, arguing that the disputed components of the dues have not yet been finalised.
The company said it has already paid all undisputed AGR dues on a self-assessment basis.
In its latest plea, the company cited the Supreme Court’s July 2024 ruling in Mineral Area Development Authority vs Steel Authority of India, where the court held that Parliament lacked legislative competence to tax mineral rights and waived interest and penalties on pre-July 2024 demands. Vodafone Idea argued that similar relief should apply to its AGR dues.
The amendment follows a fresh writ petition filed on 8 September challenging DoT’s additional demand.
Vodafone Idea said both sides have admitted that the figures are yet to be reconciled and finalised, and argued that until the principal amount is clearly determined, it cannot be treated as a defaulter or liable to penalties.
During a September hearing, Solicitor General Tushar Mehta, appearing for the Centre, said that since the government now holds a significant equity stake in the country’s third-largest telecom operator, a balanced solution that protects consumer interests is needed. He urged the bench to take up the matter urgently.
Vodafone Idea had earlier, on 13 May, sought a waiver of about ₹45,000 crore in interest and penalties, which the Supreme Court dismissed on 19 May. DoT had pegged the company’s total dues at ₹58,254 crore — far higher than Vodafone Idea’s estimate of ₹21,500 crore.
The dispute dates back to 2019, when the Supreme Court ruled that telecom operators must pay statutory liabilities on AGR, including non-telecom revenue. The 2020 order barred any self-assessment or reassessment, amid discrepancies between DoT’s calculations and operators’ self-assessed dues.
Vodafone Idea already owes around ₹83,400 crore in AGR dues, with annual payments of ₹18,000 crore starting this March. Including penalties and interest, total liabilities are estimated at around ₹2 trillion. The company has said its cash flows are insufficient to pay the dues.
Former CEO Akshaya Moondra said in August that early resolution of the AGR dispute was critical for securing bank funding. Vodafone Idea has asked the Supreme Court to quash DoT’s additional demands for FY17 and earlier, and order a comprehensive reassessment and reconciliation of all AGR dues for that period. The company warned that the liability threatened its survival and the “livelihood of thousands of employees working directly or indirectly.” Vodafone Idea serves about 198 million subscribers and employs more than 18,000 people.
The telecom operator also disputed DoT’s revised calculations on licence fees and spectrum usage charges, claiming that if spectrum usage charges up to FY17 are included, additional dues amount to about ₹6,800 crore as of 31 March 2025.
In a 13 August letter, DoT said updated outstanding licence fee dues up to FY19 were not included in the Supreme Court’s 1 September 2020 order. The department added that the revised amounts were calculated with interest and penalties up to October 2019 and updated with 8% annual interest through March 2025.
In April, Bharti Airtel approached DoT seeking conversion of its AGR dues of about ₹40,000 crore into equity, which could give the government a 3–4% stake. Airtel later clarified it was ready to pay the dues but expected similar relief as other operators. Airtel is not part of Vodafone Idea’s latest petition.
The AGR dispute has remained a long-standing issue in India’s telecom sector. While DoT had pegged Vodafone Idea’s dues at ₹58,254 crore in 2019, the company’s self-assessment estimated ₹21,500 crore. The Supreme Court rejected curative petitions from Vodafone Idea and other operators in August 2024 and dismissed Vodafone Idea’s plea in May this year seeking waiver of ₹45,000 crore in interest and penalties.
