Last Updated:
The Supreme Court has turned down Vodafone Idea, Bharti Airtel’s plea for fresh relief on its adjusted gross revenue dues.
The Supreme Court dismissed petitions by Vodafone Idea and Bharti Airtel on AGR dues on May 19
Vodafone Share Price: Vodafone Idea’s stock plunged more than 10% during Monday’s trade (May 19), hitting an intraday low of Rs 6.64 after the Supreme Court dismissed its plea for a waiver on over $5 billion (Rs 45,457 crore) in telecom dues linked to Adjusted Gross Revenue (AGR). The negative sentiment also dragged Bharti Airtel shares marginally lower, weighing on the broader telecom sector.
The Supreme Court bench, led by Justice JB Pardiwala, called the petition “shocking” and “misconceived,” firmly rejecting the request made by both Vodafone Idea and Bharti Airtel. The telecom operators had sought relief from interest, penalties, and interest on penalties associated with their AGR dues.
The ruling comes as a major blow to Vodafone Idea, which recently warned that without government support, it may not survive beyond FY26. The financially strained company stated that it may be forced to approach the National Company Law Tribunal (NCLT) for insolvency proceedings if relief isn’t granted. So far, it has paid Rs 8,000 crore and is not contesting the principal amount of Rs 12,797 crore—but argues that the additional charges are unsustainable.
The total dues stand at Rs 1.95 lakh crore, with Rs 1.18 lakh crore still recoverable by the government. The company’s annual AGR payment is nearly double its operational cash flow of Rs 9,200 crore.
Previously, the Department of Telecommunications had also denied further concessions, citing the 2020 Supreme Court ruling. Bharti Airtel had submitted a similar petition seeking relief on an “equitable basis,” which was also rejected.
Disclaimer:Disclaimer: The views and investment tips by experts in this News18.com report are their own and not those of the website or its management. Users are advised to check with certified experts before taking any investment decisions.
- First Published:
