The Supreme Court on Monday clarified that the government can review and reassess Vodafone Idea’s entire adjusted gross revenue (AGR) for FY17, including interest and penalties, bringing significant relief to the cash-strapped telco. AGR is the revenue figure used to calculate license fees and spectrum fees that telecom companies have to pay to the government.
The clarification relates to the Supreme Court’s October 27 order, in which a bench comprising Chief Justice BR Gavai and Justice K Vinod Chandran observed that the company’s petition limited its claim only to the AGR claim made by the Department of Telecom (DoT) for the period up to FY17, but did not clarify whether its order applies only to Vodafone Idea on other AGR claims. ₹9,500 crore or on its total pending AGR charges of approx ₹84,000 million crowns.
In its petition filed on September 8, the telco challenged the transport ministry’s new requirement ₹9,450 crore for the years up to and including FY19 ₹2,774 crore raised against Vodafone Idea after the merger, and ₹6,675 crore against former Vodafone Group entities. “In this sum, approx ₹9,450 million, the majority amount approx ₹5,606 crore (as on 31.03.2025) is for the period till FY17 which this honorable court has already crystallized,” the company said in its petition.
“The telco has requested the Supreme Court to ask the government to review and reassess all AGR charges up to FY17, including interest and penalties,” said Mahesh Agarwal, Advocate for Vodafone Idea in the Supreme Court.
Pending a written order, the clarification means the government will have to reassess the entire amount owed and not just the additional demand, increasing the scope of relief for the ailing telecom operator, in which the government owns a 49% stake.
Shares of Vodafone Idea shot up more than 9% on Monday in response to the news on the national stock exchange.
Impressed with the AGR charges
Vodafone Idea already owes around ₹83,400 crore in AGR charges to the government with annual payments of Rs ₹18,000 crore from March. Including penalties and interest, its total liabilities to the government are estimated at approx ₹2 trillion.
The company previously said its cash flow was not enough to pay the fees, which had been piling up for years. Former Vodafone Idea CEO Akshaya Moondra had said in August that an early resolution of the AGR dispute was crucial for the telecom operator to secure funding from banks.
In September, the telco petitioned the Supreme Court to strike down additional DoT demands from FY17 and earlier and order a comprehensive reassessment and reconciliation of all AGR charges for that period.
It warned that the large liability threatened its survival and the “livelihoods of thousands of employees working directly or indirectly” with the company. Vodafone Idea serves about 198 million subscribers and employs over 18,000 people.
