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StockYard ( SEBI RA )

10th Sep · SEBI-Registered Analyst

Vodafone Idea Moves Supreme Court to Quash ₹9,450 Crore Additional AGR Demand by DoT

Vodafone Idea Ltd has filed a petition in the Supreme Court challenging the Department of Telecommunications’ (DoT) revised ₹9,450 crore adjusted gross revenue (AGR) demand, arguing that it goes beyond the scope of the Court’s March 2020 ruling, which had frozen AGR dues up to FY17. The fresh DoT calculations cover dues till FY19, including ₹2,774 crore for FY18-19 and ₹5,675 crore related to pre-merger Vodafone Group liabilities. Vodafone Idea contended that a portion of the demand, nearly ₹5,606 crore for FY17 and earlier, had already been settled by the apex court. The company has sought a full recalculation and reconciliation of AGR dues. The matter assumes urgency as the AGR moratorium ends on March 31, 2026, after which Vodafone Idea will have to begin annual instalments of around ₹18,000 crore. The operator currently owes about ₹83,400 crore in AGR dues and nearly ₹2 trillion overall to the government, including penalties and interest. The telecom operator said the additional liability will worsen its financial strain at a time when it is raising ₹5,000 crore in debt funding through its subsidiary Vodafone Idea Telecom Infrastructure Ltd to strengthen its capital base, expand 4G coverage, and selectively roll out 5G services. Vodafone Idea warned in its petition that the revised AGR demand threatens not only its survival but also the livelihood of 18,000 employees and 198 million subscribers. The Supreme Court is expected to hear the case in the coming weeks. #VodafoneIdea #SupremeCourt #AGR #Telecom #DoT #FinancialStrain #5GRollout #DebtFunding

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