CHENNAI: The Supreme Court’s written order in the adjusted gross revenue (AGR) case indicates that the recent relief discussions remain confined to Vodafone Idea (Vi), even as other telecom companies had hoped for a similar breather. The order clarifies that the government may reconsider Vi’s dues as a policy matter, but the scope of this reconsideration does not extend to other operators such as Bharti Airtel or Tata Teleservices. This effectively means that the broader legal framework defining AGR dues remains unchanged.
The AGR dispute dates back to a 2019 Supreme Court judgment that upheld the government’s definition of revenue, including non-core income such as rent, interest, and dividends, for the purpose of calculating licence and spectrum fees. This ruling saddled telecom operators with massive retrospective liabilities. Vodafone Idea’s dues were crystallised in 2020, when the Court barred any reassessment for the period up to 2016–17. However, the Department of Telecommunications (DoT) recently issued a fresh demand of about Rs 9,450 crore, which Vi has challenged, arguing that a large portion of the claim overlaps with periods already settled.
In its latest order, the Supreme Court allowed the Centre to review Vi’s dues but stopped short of reopening the legal basis of the 2019 ruling. The relief, therefore, is administrative rather than judicial and applies only to Vi’s case. This narrow scope suggests that while the government can explore measures such as restructuring, staggered payments, or interest waivers for Vi, the underlying AGR liability for the rest of the sector remains intact.
The development offers Vodafone Idea some breathing room but also highlights the continuing uncertainty over its financial future. The company faces heavy debt obligations and has warned of survival risks without meaningful policy support. The order opens the door for the government to consider relief options, though any move favouring a single operator could raise questions about parity and regulatory consistency across the sector.
For other telecom companies, the written order provides little comfort. Telecom major Bharti Airtel and others remain bound by the earlier verdict, with no indication of a sector-wide reassessment. For instance, Bharti Airtel's vice-chairman and managing director Gopal Vittal said on Tuesday that it will approach the government regarding the adjusted gross revenue (AGR) dues it owes to the exchequer.
While commenting for this report, a senior corporate lawyer from Mumbai, told The New Indian Express that the Supreme Court order reflects the Court’s cautious stance — preferring case-specific relief for a distressed player rather than revisiting settled legal principles.
Overall, the judgment underscores a delicate balance between maintaining fiscal discipline and preserving market competition. The government now holds the responsibility to decide whether and how to ease Vi’s burden without undermining the integrity of the AGR framework. While the possibility of relief offers Vi temporary hope, the larger telecom industry continues to operate under the weight of legacy dues, awaiting clear policy signals on long-term sustainability.
