By The Sampadak Express
The Supreme Court of India has dismissed pleas filed by Vodafone Idea and Bharti Airtel seeking relief from paying interest and penalties on their Adjusted Gross Revenue (AGR) dues, delivering a major setback to the telecom giants.
The apex court termed the petitions “shocking” and “misconceived,” firmly rejecting the telecom operators’ demand for exemptions on financial charges linked to the long-standing AGR dispute.
Bharti Airtel and its subsidiary Bharti Hexacom had sought a waiver of Rs 34,745 crore in dues, while Vodafone Idea sought exemption from paying Rs 45,457 crore. Both companies argued that the burden of interest, penalties, and interest on penalties was unsustainable and not part of their original liabilities.
Senior advocate Mukul Rohatgi, representing Vodafone Idea, emphasized the critical role the company plays in maintaining competition in the Indian telecom market. He also highlighted that the central government now holds a 49% stake in Vodafone Idea following a recent equity conversion of interest dues, and urged the government to adopt a “fair and public-spirited” approach.
Vodafone Idea’s plea underlined the company’s position as one of India’s top three private telecom providers, with an 18% share of the mobile subscriber base and over 20,000 employees depending on its operations. The company also stated it still owes approximately Rs 1.19 lakh crore in spectrum-related dues, separate from the AGR liabilities.
Bharti Airtel, on its part, sought a more equitable resolution, reiterating its appeal for waiver of additional charges beyond the principal AGR amount.
This is not the first time the operators have sought relief. In earlier petitions, telecom firms had requested recalculation of their AGR dues, which the Supreme Court also rejected. In its landmark 2020 ruling, the court had upheld the government’s definition of AGR and granted telecom firms 10 years to clear the Rs 93,520 crore dues.
With the latest verdict, Vodafone Idea and Bharti Airtel are left with no further judicial recourse on the matter, reinforcing the government’s stance on full recovery of AGR-related dues, including interest and penalties.
