The Department of Telecommunications (DoT) is set to begin reassessment of Vodafone Idea’s adjusted gross revenue (AGR) dues this week. According to a DoT official, the process will commence once Vodafone Idea submits a formal undertaking, committing to accept the outcome of the reassessment regardless of whether the final AGR liability increases, decreases, or remains unchanged.
The department has already sought this written assurance from the company and the reassessment will formally begin soon after it is submitted.
“First Vodafone Idea will have to give undertaking, then we will start the process of reassessment. Once we receive it then the committee to reassess its AGR dues will be formed,” said the official.
In reassessment, the DoT set to scrutinise the company’s financial records over the past 11 years, including digital filings, audit reports, and other documentation, to determine the actual AGR liability. However, the official also mentioned that it could potentially lead to a significant reduction in the principal amount, interest, and penalties.
Last week, Vodafone Idea, in an exchange filing said it will have to pay its AGR dues in instalments until March 2041. According to a repayment plan approved by the DoT, it will pay a maximum of `124 crore annually from March 2026 to March 2031, followed by `100 crore a year between March 2032 and March 2035. The balance AGR dues will be repaid in equal annual instalments over six years from March 2036 to March 2041. As per an earlier payment schedule, the telco had to pay Rs 18,000 crore by March 2026.
The telco says its AGR dues — including principal, interest, penalty, and interest on penalty — for the period from FY 2006-07 to FY 2018-19 have been frozen as of December 31, 2025. As per government calculations, the frozen AGR dues amount to around ₹87,695 crore.
In a further relief, the DoT will constitute a committee to reassess Vodafone Idea’s AGR dues, whose decision will be final.
The revised amount determined after reassessment will also be repaid in equal instalments during the March 2036–March 2041 period.
The development is expected to provide much-needed financial breathing space to Vodafone Idea as it continues efforts to stabilize operations and improve its financial position.
The government’s intervention follows Supreme Court judgments dated October 27 and November 3, 2025, in which the Court said there was no legal impediment to the Union Government reconsidering the dues, placing the matter within the government’s policy domain. The Court also cited larger public interest, noting the government’s 49% stake in Vodafone Idea and the welfare of its around 20 crore mobile subscribers.