In a major boost to Vodafone Idea (Vi), the Supreme Court on Monday allowed the Centre to reconsider the reassessment of the company’s Adjusted Gross Revenue (AGR) dues. The court said the matter falls within the government’s policy domain and was decided keeping in mind the interest of Vi’s 20 crore consumers.
A bench led by Chief Justice of India BR Gavai passed the order after hearing Solicitor General Tushar Mehta, who represented the government. Mehta told the court that the Centre has infused equity of up to 49% in Vodafone Idea to ensure the company’s stability and protect millions of subscribers.
Court Clarifies Its Stand
CJI BR Gavai clarified that the relief is being granted because the issue lies within the policy domain of the Union government. “We clarify that this is in the policy domain of the Union… there is no reason as to why that Union should be prevented from doing, with that view of the matter, we dispose of the writ petition,” he said.
However, the bench also noted that the order was being passed only in the peculiar facts of this case, considering the Centre’s equity infusion and concern for the company’s large consumer base.
The move gives Vodafone Idea breathing room to sustain operations and attract investors, marking a turning point in its long-running financial struggle.
Vodafone Idea’s Stock Surges After Verdict
Following the verdict, Vodafone Idea’s shares saw a sharp rise. After opening over 2% lower, the stock jumped 11.4% to a 52-week high of Rs 10.52 on the NSE by 11:35 a.m. It later traded nearly 7% higher as investor sentiment turned positive on the news.
Long Legal Battle Over AGR Dues
Vodafone Idea’s AGR dispute has been one of the most significant legal battles in India’s telecom sector. On October 13, the Supreme Court had adjourned the company’s plea seeking waiver of interest, penalty, and interest on penalty on its AGR dues.
The company had filed a fresh plea challenging the Department of Telecommunications (DoT) demand of ₹5,606 crore for FY 2016–17. Vi also sought a directive for DoT to reassess and reconcile dues using the “Deduction Verification Guidelines” issued in February 2020.
Earlier this year, the court refused to review its 2021 order, which dismissed pleas by Bharti Airtel and Vodafone Idea for rectifying alleged errors in DoT’s AGR calculations. The court had reaffirmed that the dues determined by the DoT were final and non-negotiable.
Timeline and Policy Reforms
The AGR dispute began in October 2019, when the Supreme Court upheld DoT’s definition of AGR to include telecom and non-telecom income. In September 2020, the court allowed telecom firms to pay dues worth ₹93,520 crore over 10 years, with 10% upfront.
In 2021, after industry pressure, the government amended the AGR definition to exclude non-telecom income — a major reform that lightened the financial burden on telecom operators, though it did not apply retrospectively.
Policy Shift May Revive India’s Telecom Sector
The Supreme Court’s decision marks more than just a relief for Vodafone Idea — it reflects a strategic policy shift by the government to stabilize the telecom industry. With over 20 crore consumers and significant government stake, Vi’s recovery is crucial for maintaining competition in a market dominated by Reliance Jio and Bharti Airtel.
If the reassessment proceeds, it could signal a broader restructuring of telecom dues and pave the way for renewed investor confidence in the sector.
