Vodafone Idea shares in focus as telco files fresh plea Supreme Court over AGR dues

Shares of Vodafone will be in focus on Wednesday, September 10, after the telecom operator filed a fresh plea in the Supreme Court seeking relief from additional adjusted gross revenue (AGR) demands raised for the period up to FY 2016-17.

The company has requested the apex court to quash the demands and direct the Department of Telecommunications (DoT) to reassess them under updated verification guidelines.

In its petition, Vodafone Idea has urged the court to instruct the DoT to conduct a comprehensive reassessment of AGR dues based on the ‘Deduction Verification Guidelines’ issued on February 3, 2020.


The telco is challenging what it says are arithmetical and duplication-related errors in the earlier calculations, which formed the basis of the government’s demand.

This legal development could inject volatility into the stock, as investors assess the implications for the company’s long-term liabilities and repayment schedule. Vodafone Idea’s total AGR dues stand as part of the Rs 93,520 crore burden shared among telecom operators, stemming from a long-standing dispute over the definition of revenue used to calculate statutory dues.

The company’s plea comes after previous re-evaluation attempts were rejected.

The Supreme Court had, in July 2021, dismissed similar applications from telecom players, including Vodafone Idea and Bharti Airtel. The top court held its earlier ruling from 2020 as final, directing telecom operators to clear their dues over a 10-year period ending March 2031.

As per that 2020 order, telcos were to pay 10% of the total dues by March 31, 2021, with the remainder to be paid in annual instalments. The court had categorically stated that no further dispute or reassessment should be entertained regarding the dues assessed by the DoT.

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Vodafone Idea has now sought an early hearing on its fresh petition, filed on September 8, in a bid to reopen the matter based on updated procedural guidelines. The market will be closely watching for any judicial response or investor sentiment around the company’s move, which could have a material impact on its balance sheet if relief is granted.

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