Fresh SC Plea Filed by Vodafone Idea Seeking ₹30,000 Cr AGR Relief; Shares Near Day’s High

Telecom Operator Requests Waiver of Penalties and Interest, Urgent Hearing Scheduled

Shares of Vodafone Idea climbed near the day’s high following reports that the company has filed a fresh plea before the Supreme Court seeking urgent relief on its adjusted gross revenue (AGR) dues. The plea, which requests a waiver of over Rs 30,000 crore in penalties and interest, is set for an urgent hearing on May 19, according to CNBC-TV18.

Vodafone Idea argued that the Centre, despite holding a 49% stake in the company, is limited in granting relief due to the binding constraints of the original AGR judgment. The telecom operator described the government as effectively a ‘partner’ whose intervention is necessary to prevent a sector-wide collapse in the financially stressed telecom space.

“The government is handicapped in granting any relief owing to the constraints of the AGR judgment,” Vodafone Idea stated in its Supreme Court plea, emphasizing that without judicial intervention, no further relief can be extended to the company.

Highlights:

• Vodafone Idea seeks waiver of over Rs 30,000 crore in penalties and interest on AGR dues.

• Urgent hearing scheduled before the Supreme Court on May 19.

• Centre’s 49% stake limits its ability to grant relief due to the AGR judgment.

• Company warns of possible sector-wide financial collapse without intervention.

• Shares of Vodafone Idea rose near day’s high post-plea filing announcement.

Shareholding and Market Context

Recent shareholding data reveals that Foreign Portfolio Investors (FPIs) hold approximately 6.56% stake in Vodafone Idea, though no individual investor controls more than 1%. The company also counts more than 59 lakh small shareholders, highlighting the broad retail investor base relying on its financial recovery.

5G Rollout Progress and Industry Developments

In a notable development concurrent with the legal plea, Vodafone Idea launched its 5G services in Delhi starting May 15, marking a significant step in the company’s network modernization and competitive positioning in India’s telecom market.

Meanwhile, competitor Bharti Airtel has reportedly explored options to seek a non-discriminatory level playing field, including probing the possibility of converting its own AGR dues into government equity, a strategy that could reshape the capital structures of debt-laden telecom firms.

Highlights:

• Vodafone Idea launched 5G services in Delhi on May 15.

• Bharti Airtel considering converting AGR dues into government equity to ease financial burdens.

• Sector-wide implications hinge on government and judicial decisions on AGR dues relief.