Vodafone Idea Moves Supreme Court to Quash Rs 9,450 Crore Fresh AGR Demand

The telecom operator’s petition also challenges DoT’s revised calculations covering liabilities up to FY19, following its merger with Idea Cellular in August 2018.

The petition claims that out of the total Rs 9,450 crore, Rs 2,774 crore pertains to the post-merger entity, i.e., the consolidated Vodafone Idea Ltd, while Rs 5,675 crore relates to liabilities of the pre-merger Vodafone Group.

Vodafone Idea argued that a significant portion of these dues, approximately Rs 5,606 crore as of March 31, 2025; relates to financial years up to 2016-17, which the Supreme Court had previously settled in its March 18, 2020 ruling. That judgment had locked AGR dues for the pre-FY17 period, ruling that no reassessment or self-assessment of such dues would be permissible.

The latest demand by DoT also includes Rs 2,774 crore for FY18-19, which Vodafone Idea has contested, alleging duplication of certain amounts and seeking reconciliation. The company has requested a comprehensive reassessment of AGR dues starting from the pre-FY17 period, citing that the fresh demands exceed the scope of the Supreme Court’s prior judgment.

AGR represents a portion of a telecom company’s gross revenue considered for regulatory payments to the government. Vodafone Idea’s petition highlights that the continued enforcement of these additional demands could further strain the company’s finances, especially as it is in the midst of fundraising to bolster 4G network expansion and accelerate 5G rollout to remain competitive with Reliance Jio and Bharti Airtel.

The telecom operator emphasized that the substantial liability created due to the AGR demand “threatens the very existence” of the company and the livelihood of thousands of employees, directly or indirectly associated with Vodafone Idea. Currently, the company serves nearly 198 million subscribers and employs more than 18,000 people.

In its petition, Vodafone Idea also highlighted that the DoT has recently revised licence fee obligations of Idea Cellular and Vodafone Idea Ltd, post-merger, which includes the additional FY18-19 demand. The company contended that these revised dues were incorrectly calculated and included amounts twice, demanding recalculation.

Once the government’s four-year moratorium on AGR payments concludes on March 31, 2026, Vodafone Idea will be required to begin instalments of Rs 16,428 crore for AGR dues, alongside Rs 2,641 crore for spectrum instalments by June 2026. The total outstanding liabilities, inclusive of AGR dues, deferred spectrum payments, interest, and penalties, are estimated to be around Rs 2 trillion through FY34.

The Supreme Court is expected to hear Vodafone Idea’s petition in the coming weeks.