The Supreme Court of India on Monday postponed the hearing of financially strained Vodafone Idea’s (Vi) petition seeking exemption from paying interest, penalties, and interest on penalties related to its adjusted gross revenue (AGR) dues demanded by the Department of Telecommunications (DoT). The matter is now expected to be taken up on October 27.
Vodafone Idea's share price declines
Vodafone Idea’s share price dropped by more than 3% on Monday after the Supreme Court postponed the hearing of the adjusted gross revenue (AGR) case until after Diwali. The stock fell as much as 3.65% to ₹8.71 per share on the BSE. The delay in proceedings dampened investor sentiment, leading to a decline in the company’s market performance.
The Supreme Court is scheduled to take up the plea filed by Vodafone Idea on October 27 in connection with the AGR dues dispute. The financially stressed telecom operator, part of the Aditya Birla Group, has contested the Department of Telecommunications’ (DoT) additional AGR demand for the period up to 2016-17. The company’s petition seeks to set aside this fresh demand, which it deems unjustified.
During the October 13 session, the Supreme Court asked the government to clarify its stance on the ongoing AGR case before the next hearing. Previously, on October 6, the court had deferred Vodafone Idea’s plea on DoT’s additional AGR claim of about ₹9,450 crore to October 13. However, both Senior Advocate Mukul Rohatgi, representing Vodafone Idea, and Solicitor General Tushar Mehta, appearing for the Centre, jointly sought a further postponement, resulting in the next hearing being fixed for October 27.
The Supreme Court of India adjourns Vodafone Idea's plea
Vodafone Idea has also filed an amended petition seeking the waiver of interest and penalties associated with the AGR dues. The company argued that disputed components of the government’s calculations remain unresolved and that it has already paid its undisputed dues based on its own self-assessment. This filing follows a writ petition lodged on September 8, challenging the DoT’s latest additional demands, which Vodafone Idea claims are inconsistent with earlier court directives.
In earlier proceedings during September, Solicitor General Mehta acknowledged before the court that since the government now holds a substantial stake in Vodafone Idea, a balanced solution is essential—one that safeguards both the company’s viability and consumer interests. He emphasized the need to expedite the hearing to reach a fair outcome. Meanwhile, Vodafone Idea’s plea for a waiver of approximately ₹45,000 crore in interest and penalties—initially submitted on May 13—was rejected by the Supreme Court on May 19. The DoT, however, continues to maintain that total AGR dues stand at ₹58,254 crore, substantially higher than Vodafone Idea’s self-calculated estimate of ₹21,500 crore.
Currently, Vodafone Idea faces AGR liabilities of around ₹83,400 crore, with annual payments of about ₹18,000 crore beginning in March this year. When interest and penalties are included, the company’s total liabilities approach ₹2 lakh crore. Executives have admitted that the firm’s existing cash flows are insufficient to meet these heavy obligations. As of 11:55 a.m., Vodafone Idea’s shares were trading 1.11% lower at ₹8.94 on the BSE, reflecting continued pressure from the mounting legal and financial uncertainties.