SC written order clarifies scope of AGR order, limits re-examination to Vodafone Idea

SC written order clarifies scope of AGR order, limits re-examination to Vodafone Idea

Even as Bharti Airtel plans to approach the government seeking some relief, the written order of the latest Supreme Court verdict on adjusted gross revenue (AGR) dues, uploaded on Tuesday, indicates that the scope of the ruling has not been expanded beyond Vodafone Idea (Vi).

In the written, a two-judge bench comprising Chief Justice of India B.R. Gavai and Justice K. Vinod Chandran clarified that its October 27 order had been modified only to the extent that the Centre is now permitted to re-examine the entire AGR dues of Vodafone Idea up to FY2016-17, instead of limiting it to the additional demand alone. “

In its written order, the Supreme Court noted: “Upon a mention being made by Mr. Mukul Rohatgi, learned senior counsel appearing for the petitioner(s), paragraph No. 6 of the order dated October 27, 2025, passed in W.P. (C) No. 882 of 2025, shall now be read as under: ‘It is further to be noted that the prayer in the petition itself restricts its claim only to the additional AGR demand raised by the respondent for the period up to the Financial Year 2016-2017 and with regard to comprehensively reassessing and reconciling all AGR dues, including interest and penalty, up to the said Financial Year.’”

The court added that the “rest of the order shall remain intact.”

The modified order provides a significant breather for the financially strained telecom operator, in which the government currently holds around 49% stake.

Earlier, on October 27, the bench had observed that the central government could reconsider Vodafone Idea’s plea to set aside the additional AGR demand of Rs 9,450 crore raised by the Department of Telecommunications (DoT). Subsequently, on November 3, the apex court verbally modified that order, allowing the government to review the entire AGR dues of Vodafone Idea up to FY2016-17.

The dispute originates from Vodafone Idea’s challenge to the additional AGR demand of Rs 9,450 crore raised by the DoT.

In its petition before the Supreme Court, Vodafone Idea sought a comprehensive reassessment of its AGR liabilities, including a recalculation of dues and a waiver of interest and penalties, arguing that several components of the dues had not been finalised.

This additional demand is part of the broader AGR issue, which the Supreme Court had ruled on in 2020. In that judgment, the court had upheld the DoT’s calculation of AGR dues up to FY2016-17 and had ruled out any further reassessment.

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.

Bharti Airtel earlier today 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.