Airtel to seek reassessment of AGR dues issue with govt: MD Gopal Vittal

In April, Bharti Airtel requested the Department of Telecommunications to convert its AGR dues of around Rs 40,000 crore into equity

Trade

• Watchlist
• Portfolio
• Message
• Set Alert

 

 

Choose Stock Exchange: BSE LIVE NSE LIVE

26 Aug, 2025 12:21

Volume

Todays L/H

More

×

Bharti Airtel said it plans to raise the issue of adjusted gross revenue (AGR) dues with the government after the Supreme Court recently allowed a comprehensive reassessment and reconciliation of AGR liabilities—including interest and penalties up to FY17—though the relief currently applies only to Vodafone Idea.

“We've always maintained that the 2019 AGR judgment was a body blow to the industry. The fact that even calculation errors were not entertained was deeply disappointing,” said Gopal Vittal, vice chairman and managing director of Bharti Airtel, during the company’s Q2 earnings call on November 4.

Vittal added that Airtel welcomes the apex court’s clarification, which permits the government to undertake a detailed reassessment of the dues. “The order has been made in the petition of Vodafone Idea. We are now planning to take up the matter with the government,” he said. "We’ll be taking things one step at a time; the first step is to reach out to the government, which the company will do over the coming days, and then take it forward from there."

Bharti Airtel’s dues, as per the DoT, stood at Rs 44,000 crore, compared with the operator’s own assessment of around Rs 13,000 crore. Airtel has so far paid Rs 18,000 crore, including a Rs 5,000-crore ad hoc payment.

In April, Bharti Airtel requested the Department of Telecommunications (DoT) to convert its AGR dues of around Rs 40,000 crore into equity—a move that would give the government a 3–4 percent stake in the country’s second-largest telecom operator.

Notably, in May, the Supreme Court had dismissed petitions filed by Bharti Airtel, Vodafone Idea, and Tata Teleservices seeking a waiver of interest, penalties, and interest on penalties related to their outstanding AGR dues.

On Monday, the Supreme Court clarified that the government could reassess and reconsider all of Vodafone Idea’s AGR dues as of FY17, including interest and penalties—a move seen as major relief for the financially stressed operator. AGR is the metric used to calculate licence fees and spectrum charges payable by telecom companies to the government.

The clarification pertains to the Court’s October 27 order, which had initially limited relief to Vodafone Idea’s additional AGR dues for the period up to FY17—amounting to about Rs 5,606 crore.

However, the latest clarification indicates that the government may now review the entire amount owed, expanding the potential relief. Vodafone Idea’s total AGR dues stand at Rs 83,400 crore, while its overall liabilities to the government, including penalties and interest, are estimated at around Rs 2 trillion.

The company’s petition, filed on September 18, sought to quash the additional AGR demands and requested a complete reassessment for the period up to FY17. The Supreme Court bench led by Chief Justice B.R. Gavai and Justice K. Vinod Chandran observed that the petition pertained to the additional demand but has now clarified that the review can extend to the entire dues, offering the government a broader mandate to reconcile the figures.