THE Supreme Court has dismissed petitions filed by telecom operators Bharti Airtel, Vodafone Idea (Vi) and Tata Teleservices, seeking waiver of interest and penalties in their adjusted gross revenue (AGR) dues, terming the petitions “misconceived”, reported IANS.
The ruling came as the Government earlier rejected debt-ridden Vodafone Idea Ltd’s plea for fresh relief on its AGR dues, according to reliable sources. The Department of Telecommunications (DoT), in a letter dated April 29, said the request for further concessions on AGR liabilities “cannot be considered” due to the Supreme Court’s verdict announced in the case in 2020. The apex court ruling fixed a 10-year timeline for telcos to clear dues.
Vodafone Idea had sought a waiver of over Rs 45,000 crore in AGR-related liabilities to ensure its survival. Bharti Airtel, along with its unit Bharti Hexacom, requested a waiver of Rs 34,745 crore in dues related to interest and penalties.
Meanwhile, DoT pointed out that Vodafone Idea has already sought and received partial support when the Government converted spectrum-related dues worth Rs 36,950 crore into equity, increasing its stake in the company to 49 per cent.
The Government had earlier requested the court to extend the repayment window to 20 years, but the plea was turned down.
Vodafone Idea has been fighting a losing court battle over the definition and calculation of AGR, which began with a 2019 ruling. Telecom companies challenged the calculations, citing arithmetic errors, but the Supreme Court rejected the claims. Vodafone Idea filed a curative petition in July 2024, which was also turned down in September 2024.
Vodafone Idea, a joint venture between UK-based Vodafone Group Plc and India’s Aditya Birla Group, has been under financial pressure since a 2019 Supreme Court verdict broadened the scope of adjusted gross revenue (AGR), significantly increasing telecom companies’ liabilities.
Although the government converted a portion of the company’s dues into equity, acquiring a 49 per cent stake, Vodafone Idea continues to struggle financially because of the crushing debt burden.
