SC Dismisses Airtel, Vodafone Idea Pleas To Waive AGR Dues

The Supreme Court today rejected petitions by Bharti Airtel Ltd, Bharti Hexacom Ltd and Vodafone Idea Ltd seeking a waiver of adjusted gross revenue (AGR) dues related to interest and penalties. The court called the petitions “misconceived.”
Bharti Airtel and Bharti Hexacom had asked for a waiver on ₹347.45 billion in AGR dues, while Vodafone Idea sought relief on ₹454.57 billion.

Bharti Airtel and Bharti Hexacom said the Supreme Court’s AGR ruling imposed a one-time liability of around ₹439.8 billion, including interest and penalties, payable over 10 years until March 31, 2031. The original principal of ₹92.35 billion increased due to interest and penalties. Despite substantial payments, the companies’ AGR liability stood at ₹383.97 billion as of March 31, according to government calculations.

They added the AGR dues have severely affected the telecom sector, threatening the survival of established players and limiting network expansion needed to stay competitive. Without a waiver extended fairly to all telecom service providers, the sector’s future could be in jeopardy, they said.

Vodafone Idea said it faced a liability of about ₹582.54 billion from the AGR verdict, rising to roughly ₹834 billion as of March. After paying ₹78.54 billion in 2020 and converting some dues into equity; with the government now holding 48.99% — the company still has significant dues to clear.

The company warned that the large AGR liability and lack of bank funding threaten its survival, risking service disruptions for around 200 million subscribers. Vodafone Idea said any threat to its operations could lead to a duopoly in India’s telecom sector, potentially causing anti-competitive practices and higher prices for consumers.

The Supreme Court had upheld the government’s demand for ₹1.47 trillion in AGR dues from telecom companies in 2019. It gave companies 10 years to pay the dues in 2020, requiring 10% upfront. The court barred revaluation of dues and said defaults would attract interest, penalties and contempt proceedings.