New Delhi: The Supreme Court on Monday dismissed pleas by Bharti Airtel, Vodafone Idea, and Tata Teleservices seeking a waiver on interest, penalty, and interest on penalty, collectively amounting to over ₹80,000 crore, on pending adjusted gross revenue (AGR) dues.
A bench comprising Justices J.B. Pardiwala and R. Mahadevan called the petitions “shocking” and “misconceived,” asserting that the relief sought was not legally tenable. “These are writ petitions filed by multinational telecom companies invoking Article 32 of the Constitution. We firmly believe they are misconceived. Dismissed,” Justice Pardiwala said.
The court also rejected senior advocate Mukul Rohatgi’s request to withdraw Vodafone Idea’s petition, opting instead to dismiss it outright. Senior advocate Arvind Datar, appearing for Tata Teleservices, also sought to be made a party in the matter, but the court dismissed Tata’s plea as well.
However, the bench clarified that if the Centre decides to extend relief to the telecom companies, the court would not obstruct such a move. “If the government wants to help you, we are not coming in your way,” Pardiwala said.
Rohatgi, representing Vodafone Idea, emphasized the company’s predicament: “You know, all we are saying is that the government – not government – is today 50% owner in my company. But they said we can’t help because of the judgment, with judgment. Their answer is not in the sense that ‘we won’t look at your representation,’ but because of the judgment of the Supreme Court,” Rohatgi told the bench.
Solicitor General Tushar Mehta, appearing for the Centre, said, “What we have said is that, in view of the judgment of the Lordships, we cannot examine [the relief sought], and it cannot be examined.”
Following the news, shares of Vodafone Idea slumped 9% to ₹6.72 on the BSE, while Bharti Airtel declined marginally to ₹1,813.50. Tata Teleservices was down 0.2% at ₹60.51.
The four-year moratorium on AGR payments ends in September, intensifying pressure on Vodafone Idea, whose financial position remains precarious amid difficulties in securing bank loans.
Vodafone Idea, which owes ₹83,400 crore in AGR dues, had sought a waiver on ₹45,000 crore comprising interest, penalty, and interest on penalty. Bharti Airtel and its unit Bharti Hexacom sought relief on ₹34,745 crore, out of their total AGR liability of ₹43,980 crore.
The AGR issue has been a significant financial strain for the telecom operators. In 2019, the Supreme Court ruled that AGR dues would include non-telecom revenue, leading to a wide gap between the Department of Telecommunications’ (DoT) calculations and the companies’ self-assessments. For Vodafone Idea, the DoT pegged the dues at ₹58,000 crore, far exceeding the company’s estimate of ₹21,500 crore.
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In September 2024, the Supreme Court rejected curative petitions filed by Vodafone Idea and other operators seeking relief from the 2019 ruling. Since March 2024, Vodafone Idea has raised around ₹26,000 crore in equity, excluding the conversion of government dues into equity.
The DoT had earlier proposed waiving 50% of interest and 100% of penalties and interest on penalties, potentially reducing Vodafone Idea’s dues by ₹52,000 crore and Airtel’s by ₹38,000 crore.
