Vodafone Idea (VI) received a significant boost from the Supreme Court on Monday, October 27, 2025. The government has agreed to re-examine its demand for additional Adjusted Gross Revenue (AGR) dues from the company, promising a decision that aligns with legal principles.
During the hearing, Solicitor General Tushar Mehta, representing the Centre before a Bench led by Chief Justice of India B.R. Gavai, highlighted a “huge change in circumstances” since the Supreme Court’s last AGR litigation involving Vodafone Idea.
Mr. Mehta pointed out that the government has now injected significant equity, acquiring a 49% stake in the telecom giant.
“This means the government’s interests, which are intrinsically linked to public interest, are now directly tied to the company’s fate,” the top law officer emphasized.
He further informed the Court that Vodafone Idea serves 20 crore consumers, and any ruling would directly impact these customers. While acknowledging previous government concerns, such as those related to over-invoicing, Mr. Mehta assured the court that all such issues would be thoroughly reviewed and considered.
The Court recognized that with the government’s substantial equity investment and the involvement of 20 crore customers, the matter has transitioned into a “policy domain.” It found the government’s intention to re-evaluate the additional AGR dues for FY 2016-2017 entirely appropriate, stating that such a decision would serve a broader public interest.
Vodafone Idea had originally appealed to the Supreme Court against the Department of Telecommunication’s (DoT) demand for additional AGR dues spanning the 2016-2017 period. The company contended that these liabilities had already been determined and should not be subject to alteration or increase. Their plea sought to annul the DoT’s fresh demand and requested a complete re-assessment and reconciliation of all AGR dues up to FY 2016-17.
This new legal challenge follows just months after the apex court had previously dismissed similar petitions from Bharti Airtel, Vodafone Idea, and Tata Teleservices. Those earlier pleas sought relief from interest, penalties, and interest on penalties related to their AGR liabilities, citing severe financial difficulties. In its May order, the Supreme Court had deemed those petitions “misconceived.”
Indeed, the Chief Justice had previously underscored the importance of bringing finality to the ongoing AGR litigation.
More recently, on September 19, the Supreme Court had rejected a curative petition filed by several telecom companies, including Bharti Airtel and Vodafone Idea. This petition challenged the court’s landmark October 2019 judgment, which affirmed the DoT’s right to recover approximately ₹92,000 crore in AGR from them.