Vodafone Idea has moved the Supreme Court seeking to quash an additional Rs 9,450 crore AGR demand by the Department of Telecommunications (DoT), arguing that the fresh dues exceed the scope of the Court’s earlier ruling on AGR liabilities.
The telecom operator’s petition challenges the DoT’s revised calculations covering dues up to FY17 and the updated licence fee obligations for both the Idea Cellular group and Vodafone Idea Limited through FY19.
These revised dues fall under the government’s moratorium on AGR payments, which ends on March 31, 2026, after which Vodafone Idea will have to begin making instalments.
As part of its latest assessment, the DoT has raised an extra demand of Rs 2,774 crore for FY18-19. Vodafone Idea has contested the calculation, claiming that certain amounts have been added twice and need reconciliation. The company has asked for a recalculation of dues, starting from the pre-FY17 period.
Read More: Vodafone Idea eyes non-bank funds, urges Centre to settle AGR dues to enable bank’s support by March
According to the petition, out of the total Re 9,450 crore demand, Rs 2,774 crore pertains to the post-merger entity — Idea Group and Vodafone Idea — following their August 2018 consolidation, while Rs 5,675 crore relates to the pre-merger Vodafone Group’s liabilities.
Vodafone Idea further noted that this total amount, scheduled for payment by 31 March 2026, includes a significant portion of approximately Rs 5,606 crore (as of 31 March 2025) for dues up to FY 2016-17, which had already been settled by the Supreme Court.
Vodafone Idea declined to comment on the matter.
The Supreme Court is expected to hear the petition in the coming weeks.
The Supreme Court had on 18 March 2020 locked Vodafone Idea’s AGR dues till 2016-17 based on calculations by the department of telecommunications (DoT), adding that no self-assessment or re-assessment of the dues would be permitted.
But DoT has now sought additional payments for up to 2018-19, Vodafone Idea said in its petition dated 8 September.
The telecom operator owes about Rs 83,400 crore in AGR dues to the government, with annual payments of Rs 18,000 crore beginning in March. Overall, Vodafone Idea’s total dues to the government stand at around Rs 2 trillion, including penalty and interest.
The telecom operator requested the Supreme Court to quash DoT’s additional demands for AGR payments up to FY17, and to order a comprehensive reassessment and reconciliation of all AGR dues for that period. Adjusted gross revenue represents a portion of a telecom company's gross revenue that’s considered towards regulatory payments.
Read More: Vodafone Idea banks on govt AGR relief, fundraise to meet future liabilities: Ravinder Takkar
Vodafone Idea said the revised demand will worsen its financial strain at a time when it is trying to raise funds to strengthen 4G coverage and accelerate 5G rollout to compete with Reliance Jio and Bharti Airtel.
The substantial liability created by the AGR demand threatened the company’s existence and “the livelihood of thousands of employees working directly or indirectly" with it, the struggling telco said in its petition.
The company has nearly 198 million users and more than 18,000 employees.
According to Vodafone Idea’s latest petition, DoT’s additional demand pertains to dues involving licence fees (calculated as a percentage of AGR). If payment demands towards additional spectrum usage charges for the period up to FY17 are also considered, the amount is about Rs 6,800 crore as on 31 March 2025, it said.
Vodafone Idea Ltd is currently in advanced talks to raise around Rs 5,000 crore in debt financing to bolster its capital base as part of its turnaround efforts, Moneycontrol reported on August 26.
The funds will be raised through Vodafone Idea Telecom Infrastructure Limited, a subsidiary that holds part of the operator’s telecom infrastructure and renewable energy assets. JM Financial has been appointed as advisor, with the deal expected to close within the next two weeks.
If completed, the transaction would mark a key step in Vodafone Idea’s struggle to restore financial stability. Burdened by massive liabilities, shrinking subscribers, and the Supreme Court’s ruling on adjusted gross revenue (AGR) dues, the operator has long been fighting for survival. Sources said the proceeds will be channelled into capital expenditure, including network expansion and selective 5G rollouts, helping the company sustain its presence in India’s fast-growing data market through the first half of 2026.
Although the government’s conversion of over Rs 53,000 crore of dues into equity provided temporary relief, Vodafone Idea still needs fresh funding to remain competitive against market leaders Reliance Jio and Bharti Airtel.
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