SC Defers Hearing on Vodafone Idea’s Plea Against ₹94.50 Billion AGR Demand to October 13

By BasisPoint Insight

October 8, 2025 at 6:34 AM IST

The Supreme Court on Monday deferred the hearing of Vodafone Idea Ltd.’s plea seeking to quash the Department of Telecommunications’ additional adjusted gross revenue (AGR) demand of ₹94.50 billion till 2018-2019. The adjournment came after a request from Solicitor General Tushar Mehta, representing the government.

Vodafone Idea has also sought exemption from paying interest, penalty, and interest on penalty on the principal AGR dues. The company argued that the additional demand violates the Supreme Court’s 2020 order, which had finalised all AGR liabilities till 2016-2017. Despite this, the telecom department has raised fresh demands for that period, the company said in its petition.

According to the filing, the DoT in August issued a letter to Vodafone Idea computing dues of about ₹94.50 billion, to be considered with reference to the scheduled payment due on Mar. 31, 2026. Of this, around ₹56.06 billion pertains to the period till 2016-2017, which has already been settled by the top court, the petition said.

In May, the Supreme Court had dismissed a similar plea by Vodafone Idea seeking waiver of ₹454.57 billion in AGR dues towards interest and penalties. The bench had observed that while the court cannot intervene, the government is free to consider any relief.

The apex court had in 2019 upheld the government’s interpretation of AGR, imposing dues of ₹1.47 trillion on telecom operators including Bharti Airtel Ltd., Bharti Hexacom Ltd., and Vodafone Idea Ltd. In 2020, the court allowed a 10-year repayment window, directing companies to pay 10% upfront and warning that any default would attract penalty and interest, and be treated as contempt of court.