SC dismisses Vodafone, Airtel, Tata petition seeking waiver of AGR dues

The ruling definitively ends telcos’ attempts to challenge interest and penalty components of the AGR dues through the court process.

The Supreme Court has dismissed pleas filed by telecom companies—Vodafone Idea, Bharti Airtel, Bharti Hexacom, and Tata Teleservices—seeking a waiver or recalculation of their adjusted gross revenue (AGR) dues. Calling the petitions “misconceived,” the Court on Monday underscored that statutory payments are binding and non-negotiable, effectively closing the door on further legal relief.

The bench comprising Justices J.B. Pardiwala and R. Mahadevan was unambiguous in its stance in rejecting the petitions. “We believe and very firmly that these are misconceived writ petitions. Dismissed,” the court said.

The ruling definitively ends telcos’ attempts to challenge interest and penalty components of the AGR dues through the court process.

During the proceedings, the lawyers for the petitioners contended that they had approached the court because the government had refused to consider their representation seeking relief on AGR dues in view of previous Supreme Court rulings affirming the levy .

Responding to a question from the bench as to whether the government wanted the court to be a party, Solicitor General Tushar Mehta said: “What we have said is that in view of the judgement of court we cannot examine it.”

In a May 20 note titled “Dismissal of AGR Petition – Devil is in the Details?”, Citi Research said it was “surprising” that Vodafone Idea and then Bharti Airtel had moved fresh petitions at this stage. “This makes us wonder if this is actually the outcome that the companies and government were perhaps hoping for and whether this now paves the way for the government to provide AGR relief while staying compliant with Court orders,” the report stated.

According to Ajay Khatlawala, Managing Partner at Little & Co, once legal remedies have been exhausted, the executive branch must take any next steps.

A four-year moratorium on AGR payments expires in September, after which payments resume on March 31, 2026. Vodafone Idea, the most financially vulnerable telco, will be required to pay Rs 18,000 crore annually for six years—more than double its current annual operational cash generation of Rs 8,400–9,200 crore.

Vodafone Idea, which owes Rs 83,400 crore in AGR dues, had sought a waiver on Rs 45,000 crore related to interest, penalties, and interest on penalties. Bharti Airtel and its subsidiary Bharti Hexacom sought relief on Rs 34,745 crore of their total Rs 43,980 crore liability.

In its May 13 plea, Vodafone Idea warned it would be unable to function beyond FY26 without bank funding. “It is humbly submitted that without bank funding, the petitioner company will not be able to operate beyond FY 2025-26, as it does not have the ability to pay AGR instalment of ₹18,000 crore as per DoT demands due in March 2026,” the company told the Court.