Vodafone Idea has filed a writ petition in the Supreme Court seeking waiver of approximately Rs 45,457 crore in adjusted gross revenue (AGR) dues. The waiver request is specifically on the amount relating to interest, penalty, and interest on penalty components. The company is not seeking any relief on the principal amount of Rs 12,797 crore.
The bench is likely to hear the petition on May 19.
As per the petition, Vodafone Idea has said that as on March 31, 2025, its total AGR dues stands at around Rs 83,400 crore as of March 31, which includes Rs 28,294 crore in interest, Rs 6,012 crore in penalties, and Rs 11,151 crore in interest on penalty. The telecom operator has already paid Rs 7,854 crore toward these dues and accepted part conversion of dues into equity, following an option offered under the 2021 telecom reform package. The government, following this conversion, now owns a 48.99% equity stake in Vodafone Idea, effectively making it the single largest shareholder.
The company has proposed that the principal demand of Rs 17,213 crore as of October 2019 be accepted as final and that the balance dues, after accounting for the payments already made and the conversion of dues into equity, be pegged at Rs 7,852 crore. It has requested that this reduced amount be allowed to be paid over a 20-year period, including a five-year moratorium with no further interest accrual. However, in a letter dated April 29, 2025, the department of telecommunications rejected this representation, citing the binding nature of the Supreme Court’s September 2020 ruling on the AGR dues.
In its petition, Vodafone Idea has said that it is not seeking a review of the earlier judgment but is instead pleading for relief from the burdensome financial consequences of that ruling, particularly the interest and penalty components. The company underscores that the dues arise from contractual obligations under licence agreements and that the financial circumstances it faces today were unforeseen and exceptional.
The company has stated that it currently services around 200 million subscribers, of which approximately half are in rural India. It employs over 20,000 people and has invested more than Rs 135,000 crore in the telecom infrastructure over the past decade. It has contributed Rs 61,000 crore in licence fees and spectrum usage charges over the same period, in addition to paying Rs 11,800 crore in GST during FY 2024–25. Yet, due to its precarious financial health and inability to raise fresh debt, it has said that continuing with annual AGR payments of around Rs 18,000 crore for the next six years is not viable.
Vodafone Idea has said that failure to provide relief could lead to its collapse, thereby resulting in a de facto duopoly in the telecom sector and posing serious risks to consumer welfare, employment, and fair competition.