SC Rejects Vodafone Idea & Airtel’s AGR Review Plea: No Relief on Dues

Highlights:

• Supreme Court dismisses AGR review petitions by Vodafone Idea & Bharti Airtel
• Telecom firms claim errors in government’s AGR dues calculations
• Vodafone Idea faces a ₹25,000 crore hit; Airtel also impacted
• Shares of Vodafone Idea fall 2.43% post-verdict
• Curative petitions likely to be filed as the last legal option

Supreme Court Ruling: No Relief on AGR Dues

India’s Supreme Court (SC) has dismissed review petitions filed by Vodafone Idea and Bharti Airtel seeking corrections in the adjusted gross revenue (AGR) dues calculations.

SC’s Verdict (Bench of Chief Justice Sanjiv Khanna, Justice Abhay S. Oka, and Justice Sanjay Kumar):

📌 “We have carefully perused the review petitions… no case for review is made out. The review petitions are dismissed.”

📌 With this decision, telecom firms now have no further legal recourse, except for filing curative petitions.

Market Reaction: Vodafone Idea Shares Fall

🔻 Vodafone Idea shares dropped 2.43% to ₹8.44 apiece at 10:45 AM on BSE Sensex, which itself was down 307 points (0.4%).
🔻 Bharti Airtel slipped 0.2% to ₹1,710.10 per share.

AGR Dues Dispute: What’s at Stake?

📌 Vodafone Idea claims the rejection will cost them ₹25,000 crore
📌 AGR dues exceed ₹1 lakh crore for telecom companies
📌 Companies argue the government miscalculated dues, omitting payments already made

In its plea, Vodafone Idea stated:
“It is inconceivable that even errors or inadvertent additions by the DoT have not been corrected. This is a travesty of justice, costing the company ₹25,000 crore.”

The Department of Telecommunications (DoT) had calculated AGR dues, including penalties and interest, which telecom companies argued were riddled with errors.

What Happens Next?

Curative Petitions Likely

📌 Legal sources indicate that Vodafone Idea & Airtel will file curative petitions—the last available legal remedy.

Financial Strain on Vodafone Idea

📌 Vodafone Idea already struggles with high debt & pending dues.
📌 AGR dues add more pressure on its survival & fundraising efforts.

Government’s Stance

📌 The Indian government has so far upheld AGR calculations and refused to allow any corrections.

Background: AGR Dispute Timeline

• 2021: SC rejected telecom companies’ plea for corrections in AGR dues.
• 2022: Vodafone Idea & Airtel filed curative petitions for an open court hearing, but no relief was granted.
• 2023: SC dismissed further petitions seeking a re-computation of dues.
• 2024: SC again rejects review petitions, leaving no room for legal corrections except a curative petition.

Conclusion: What’s Next for Vodafone Idea & Airtel?

📌 With no immediate legal relief, Vodafone Idea and Airtel must now either pay up or await the outcome of curative petitions.

📌 For Vodafone Idea, the ₹25,000 crore liability worsens its financial troubles, impacting fundraising efforts and future operations.

📌 Investors are closely watching the telecom sector, especially Vodafone Idea’s survival strategy amid massive dues and debt.

📌 Airtel, though affected, remains in a stronger financial position compared to Vodafone Idea.