Govt to study SC order before taking call on Vodafone Idea relief: Scindia

Analysts said the ruling could pave the way for timely relief—possibly before March 2026—and set off a series of positive developments for Vodafone Idea

Telecom minister Jyotiraditya Scindia on October 29 said the government has not yet received the Supreme Court’s written order in the Vodafone Idea adjusted gross revenue (AGR) case and will assess its implications before making any policy decision.

“We will need to study the order to understand its implications and will wait for Vodafone Idea to apply for seeking relief,” Scindia said.

Officials told Moneycontrol that the Centre will decide on possible relief measures for Vodafone Idea only after examining the detailed order. “The finer details of the judgment will guide us on the course of action for any possible relief,” a senior government official said, adding that the written order is still awaited.

Another official said the telecom operator will have to formally communicate the kind of relief it is seeking once the court issues its directive. “The extent of any relief will depend on internal deliberations and the court’s final wording,” the official added.

On October 27, the Supreme Court permitted the department of telecommunications (DoT) to reassess its AGR demand from Vodafone Idea and address the company’s grievances without judicial intervention. The bench, led by Chief Justice BR Gavai and Justice K Vinod Chandran, observed that any decision on relief was a policy matter. The government currently holds a 49 percent stake in the loss-making telco.

“We see no impediment in the Union of India reconsidering the issue and taking an appropriate decision in law,” the court said, while reserving its detailed written order.

Vodafone Idea had challenged DoT’s demand for an additional Rs 9,450 crore in AGR dues, seeking a waiver on interest and penalties. The operator, which owes around Rs 83,400 crore in AGR dues, has annual payments of about Rs 18,000 crore beginning March 2026. Including interest and penalties, its total liabilities to the government are estimated at nearly Rs 2 lakh crore.

Analysts said the ruling could pave the way for timely relief—possibly before March 2026—and set off a series of positive developments for the company.

According to Citi Research, the verdict “could have significant positive ramifications for Vodafone Idea and, by extension, for Indus Towers,” adding that relief could arrive “in the coming weeks or months.”

Analysts said the clarity could unlock bank funding of Rs 25,000 crore, boost confidence among lenders, and help sustain network capex. It may also enable fresh equity infusion, potentially diluting the government’s stake below 49 percent and facilitating further debt-to-equity conversions.

“A successful equity raise would trigger a chain of positive developments for Vodafone Idea and give Indus Towers management the confidence to reinstate dividends,” Citi noted.

In a stock exchange filing on October 27, Vodafone Idea said it looks forward to working closely with the DoT “to resolve this matter in the interests of our nearly 200 million subscribers,” calling the ruling “an impetus to the Digital India vision.”