Vodafone Idea wins relief in Supreme Court as Centre agrees to reconsider additional AGR dues

Vodafone-Idea (VI) won a major relief in the Supreme Court on Monday (October 27, 2025) after the government agreed to reconsider its demand for additional adjusted gross revenue (AGR) dues from the company and take an appropriate decision in accordance with the law.

Appearing before a Bench headed by Chief Justice of India B.R. Gavai, Solicitor General Tishar Mehta, for the Centre, said there has been a “huge change in circumstances” in the time between previous AGR litigation in the top court involving Vodafone-Idea and the present one.

Mr. Mehta submitted that the government has infused a “substantial equity” to the tune of 49% in the company.

“Thus the government’s interest, which is the public’s own interest, is interlinked with the company now,” the top law officer submitted.

He further briefed the Court that the company has 20 crore consumers, and any decision on the company would affect the customers too. He said the government had concerns like over-invoicing, etc., associated with the company, but that would be comprehensively heard and considered in detail.

The Court said the issue has entered into the “policy domain” with the government pumping in considerable equity and the issue involving 20 crore customers of the company. The Court found nothing wrong in the government’s stand to reconsider its demand for additional AGR dues for the financial year (FY) 2016-2017 from the company and take a suitable decision, saying this would also address the larger public interest involved.

VI had approached the apex court against the additional AGR demand raised by the DOT for the 2016-2017 period. The company had argued that the liabilities were already calculated and could not be changed or increased. It had urged the Court to quash the additional DoT demand while seeking a comprehensive re-assessment and reconciliation of AGR dues for the period till FY 2016-17.

The fresh litigation had come only months after the apex court had rejected earlier petitions by Bharti Airtel, Vodafone Idea (VI) and Tata Teleservices seeking relief in the payment of their interest on the dues, penalty and interest on the penalty towards their respective AGR liabilities on the ground that they were under severe financial constraints. The apex court had, in its order in May, concluded their pleas to be “misconceived”.

In fact, the Chief Justice had voiced the need for finality in the AGR litigation.

On September 19, the apex court had dismissed a curative petition filed by telcos, including Bharti Airtel and Vodafone Idea, against the court’s October 2019 judgment upholding the DoT’s move to recover AGR of about ₹92000 crore from them.