NEW DELHI: Telecom service provider Vodafone Idea has filed a fresh petition challenging the additional ₹2,774 crore AGR (Adjusted Gross Revenue) demand raised by the Department of Telecommunications (DoT) for the period up to FY 2016-17.
In its plea, the company has urged the court to quash the revised demand, arguing that it is inconsistent with established deduction verification procedures. According to the petition, the demand inflates dues and disregards legitimate deductions.
The Supreme Court had earlier dismissed a similar plea in July 2025, when telecom companies, including Vodafone Idea, claimed errors in AGR dues amounting to over ₹1 lakh crore. At that time, Vodafone Idea’s liability stood at ₹58,254 crore, while Bharti Airtel’s was ₹43,980 crore.
As per the petition, the DoT had initially demanded ₹5,960 crore from Vodafone Idea. After recalculation, this was reduced to ₹2,774 crore, prompting the company to once again seek judicial intervention for a re-evaluation of AGR computations.
The petitioners have also sought a direction to the DoT to comprehensively reassess and reconcile all AGR dues up to FY 2016-17 in line with the Deduction Verification Guidelines issued on February 3, 2020. These guidelines, introduced after the Supreme Court’s 2019 ruling on AGR, were designed to ensure transparent and consistent verification of deductions claimed by telecom operators.
The plea stresses that failure to apply these guidelines has caused significant discrepancies in the calculation of dues, placing an undue financial burden on telecom companies already grappling with heavy debt and stiff competition.
The company has also submitted a representation to the government seeking a waiver of interest, penalty, and interest on penalty, which was denied. It then moved the Supreme Court regarding the AGR issue; however, the apex court directed the telco to engage with the government, deeming it a policy matter.
In its affidavit before the Supreme Court, Vodafone Idea stated that it would not be able to survive without government support and requested relief.
The company’s AGR liability, as of the June 2025 quarter, stood at approximately ₹75,000 crore. It is required to pay this liability in six equal installments of ₹18,000 crore each, starting from March 31, 2026, after the moratorium period ends.
For the quarter ended June 30, 2025 (Q1 FY26), Vodafone Idea reported a consolidated net loss of ₹6,608 crore, compared to a loss of ₹6,426.7 crore in the same period last year. The increased loss was primarily due to a rise in finance costs.