Vodafone Idea, Bharti Airtel & Tata Teleservices Face Setback as Supreme Court Rejects AGR Relief Pleas

On Monday, the Supreme Court of India dismissed petitions from leading telecom majors including Bharti Airtel, Vodafone Idea, and Tata Teleservices, which sought waivers for interest, penalties, and interest on penalties related to their Adjusted Gross Revenue (AGR) dues. The bench, led by Justice J.B. Pardiwala, described the petitions as "misconceived," reinforcing the government's stance on AGR dues recovery.

Supreme Court rejects Airtel, Vodafone Idea and Tata Teleservices' Petitions

Bharti Airtel, along with its unit Bharti Hexacom, had requested a waiver of Rs 34,745 crore, comprising interest, penalties, and interest on penalties. They argued that the Supreme Court's 2020 AGR ruling had imposed significant financial strain on the telecom sector. The Department of Telecommunications (DoT) had pegged their dues at Rs 38,397 crore as of 31 March 2025.

Vodafone Idea, facing severe financial distress, sought a waiver of over Rs 45,000 crore in AGR-related liabilities to ensure its survival. The company warned that without relief, its operations could be at risk, potentially affecting around 200 million subscribers.

"We are really shocked by these petitions which have come before us. It is not expected of a multinational company. We will dismiss it," the bench reportedly said while addressing senior advocate Mukul Rohatgi, who appeared on behalf of Vodafone.

The Supreme Court's decision upholds the government's earlier demand for recovery based on AGR calculations, a long-standing issue that has significantly impacted the financial health of telecom operators. The ruling reinforces the legal stance that telecom companies are liable for the full spectrum of AGR-related payments.

BSE Telecom Index Today: Vodafone Idea Shares Fall, Bharti Hexacom's shares Rise

On May 19, the BSE Telecom index slipped slightly by 0.24%, closing at 2,907.68 points. Shares of Vodafone Idea dropped by 8.82% to Rs 6.72 each, although they recovered slightly from the day's lowest point.

The stock was down 8% at Rs 6.76 around 1:20 PM following the Supreme Court's decision rejecting its plea for relief in the AGR dues case. Meanwhile, Bharti Hexacom's shares rose by 1.34%, trading at Rs 1,687.65 on Monday's trading session.

This development marks a significant setback for the telecom industry, which has been grappling with financial challenges stemming from the AGR dues. The Supreme Court's firm stance underscores the government's commitment to enforcing AGR-related payments, despite the financial strain on telecom operators.

The telecom sector now faces the challenge of managing these substantial dues while maintaining operational stability. The Supreme Court's decision serves as a reminder of the legal obligations telecom companies have towards the government, particularly concerning AGR dues.