Supreme court rejects Vodafone Idea’s Rs 45,000-crore AGR waiver bid

The Supreme Court has refused Vodafone Idea Limited (VIL) the relief it was seeking. On Monday, the court dismissed the company’s petition in the adjusted gross revenue (AGR) case, in which VIL had asked for the waiver of more than Rs 45,000 crore in outstanding AGR dues,an amount the operator says is vital to its survival. Bharti Airtel had filed a similar application, arguing that any concession granted to VIL should be extended to all operators.

A bench led by Justice J B Pardiwala described both petitions as “misconceived”. The ruling removes any prospect of the Court revisiting the calculation of AGR liabilities.

Vodafone Idea has already benefited from substantial government support. Under the 2021 rescue package, the Indian government deferred the operator’s spectrum-usage charges (SUC) and AGR liabilities for four years. It then further eased the burden by converting a large share of the accrued interest into equity, thereby reducing Vi’s outstanding AGR interest obligations.

The decision is a blow to VIL’s plans to raise funds. Its Rs 55,000 crore capital-expenditure programme hinges on fresh bank financing, and lenders had been awaiting clarity on the AGR issue. Monday’s judgment now provides that clarity, though not the outcome the company wanted. The telcos' pleas to recalculate the AGR dues will no longer be considered by the Supreme Court. The Supreme Court's ruling may have a significant impact on Vi's future, in the wake of the judgment, the company’s share price fell 9.36 per cent to Rs 6.68.