The Supreme Court on Monday dismissed petitions from three major telecommunications companies, Vodafone Idea, Airtel, and Tata Teleservices, seeking waivers on adjusted gross revenue (AGR) dues worth over ₹1.2 lakh crore. The bench, comprising Justices J.B. Pardiwala and R. Mahadevan, described the pleas as "misconceived."
"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 stated to senior advocate Mukul Rohatgi, who represented Vodafone Idea. The Court declined to interfere with the government's position regarding financial assistance to the telecom companies.
Vodafone Idea had specifically requested relief of approximately ₹30,000 crore, covering interest, penalty, and interest on penalty components of their AGR dues. The company's petition emphasized that they were not seeking a review of the original judgment but only waivers on penalties and interest.
The AGR dispute originated in October 2019 when the Supreme Court upheld the Department of Telecommunications' broader definition of "adjusted gross revenue," which included non-core revenues like rent and interest income. According to DoT assessments, Vodafone Idea owes ₹58,254 crore, Bharti Airtel owes ₹43,980 crore, and Tata Teleservices owes ₹16,798 crore. Approximately 75% of these dues comprise interest and penalties.
The verdict had immediate market repercussions, with Vodafone Idea shares plunging 12.2% to an intraday low of ₹6.47 on the BSE. Airtel shares remained relatively stable with a marginal increase of 1%, while Tata Teleservices declined by nearly 5%.
Rohatgi had earlier emphasized that Vodafone Idea's continued existence was essential for sustaining competition within the telecommunications industry. Following a recent conversion of interest obligations into equity, the government now maintains a 49% ownership in the company, which had previously warned it might not sustain operations beyond FY26 without relief.
With legal avenues now exhausted, the telecom companies are banking on governmental intervention. The Department of Telecommunications has proposed waiving 50% of interest and 100% of penalties and interest on penalties to alleviate the financial burden on operators.
Legal experts view the decision as reinforcing regulatory compliance, while telecom analysts warn that without substantial relief, reduced competition and higher consumer prices may follow. Bharti Airtel has sought a level playing field, requesting the DoT to consider converting its AGR dues into equity, similar to the relief extended to Vodafone Idea.
The telecom companies must now adhere to the 10-year payment timeline established in September 2020, which requires them to clear their dues by 2031, with 10% having been payable by 31 March 2021.