New Delhi
The Supreme Court has scheduled the hearing of Vodafone Idea’s petition for September 26, 2025, where the telecom operator has challenged the Department of Telecommunications’ (DoT) fresh demand of ₹9,450 crore in additional Adjusted Gross Revenue (AGR) dues. The case carries significant implications for the financially stressed company and the broader telecom sector.
Vodafone Idea contests fresh demand
Vodafone Idea approached the court after DoT issued a notice seeking ₹9,450 crore in additional AGR dues. The company argued that a large part of this demand overlaps with periods already settled under the Supreme Court’s March 2020 order, which crystallised AGR dues up to the financial year 2016–17 and barred reassessments for those years.
Of the disputed demand, around ₹2,774 crore is attributed to Idea Group and Vodafone Idea (post-merger), while about ₹6,675 crore relates to Vodafone Group (pre-merger). Vodafone Idea contends that enforcing the demand would severely strain its finances and impact its operations.
DoT seeks time, government stake in focus
The government, represented in court by the Solicitor General, sought more time to respond, leading to the deferment of the case to September 26. Officials also highlighted that since the government now holds a substantial equity stake in Vodafone Idea, any resolution must balance the company’s survival, consumer interests, and public revenue.
Stakes for the telecom sector
Vodafone Idea is already grappling with massive AGR liabilities and a debt burden that threatens its ability to compete with rivals. The company has warned that enforcing additional dues without relief could jeopardise services to nearly 198 million subscribers and endanger thousands of jobs.
The case also carries precedential value. If the court allows DoT’s demand for FY2018–19, it may open doors to further reassessments, undermining the finality of earlier AGR orders. Conversely, a decision in Vodafone Idea’s favour would limit DoT’s ability to pursue fresh claims.
AGR dispute background
AGR, or Adjusted Gross Revenue, refers to the revenue on which telecom operators pay licence fees and spectrum usage charges. The definition has been contentious for decades, with disputes centring on whether non-core revenues should be included.
In its March 2020 ruling, the Supreme Court held that AGR dues calculated by DoT up to FY2016–17 must be paid in full, rejecting any reassessment. Since then, operators including Vodafone Idea and Bharti Airtel have been paying dues in instalments under a government-approved schedule.
What lies ahead
On September 26, the Supreme Court is expected to examine whether the fresh ₹9,450 crore demand stands legally valid. The outcome will not only decide Vodafone Idea’s financial future but also shape the regulatory environment for the telecom industry, which remains under stress due to high spectrum costs and competitive pressures.
Conclusion
The September 26 hearing is being closely watched by industry stakeholders, investors, and consumers. A verdict in favour of Vodafone Idea may provide relief and stability to the sector, while an adverse decision could deepen the financial crisis of India’s third-largest telecom operator.