Vodafone Idea seeks Supreme Court’s relief on Rs 45,000 cr AGR dues

VIL’s efforts to revive continue.

After recent conversion of equity by Govt, the Company has now petitioned the Supreme Court (SC).

• Petition is to waive more than Rs 45,000 cr of AGR dues, primarily related to interest and penalties.
  • In addition to the principal amount of Rs 12,797 crore in AGR dues, VIL is liable to pay an interest of Rs 28,294 crore, penalty of Rs 6,012 crore, and interest on penalty of Rs 11,151 crore, the company said in its petition.
  • Even after converting some of its dues into almost 49% equity, the government still has dues of approximately Rs 1,19,000 crore towards spectrum fee, in addition to AGR dues (Rs 83.400 cr as per the telecom department), to be recovered from Vodafone, it pointed out.
  • An annual installment of around Rs 18,000 crore is due on March 31, 2026 from VIL wrt the AGR dues.
• SC’s relief is needed as the AGR ruling is binding and government on it’s own can not decide to waive.
• VIL’s counsel has argued that the survival of Vodafone Idea is crucial for maintaining competition in the telecom sector, adding that the company is unable to bear the financial burden on its own.
  • The petition mentions, “Due to the enormous AGR liability and no bank funding, Vodafone’s very survival is at risk. Any disruption in services of the company will have a direct and far-reaching bearing on its approx 200 million subscribers,” it said.
• It further claims that the government is now effectively a “partner” in the company, holding a 49% equity stake after converting AGR and spectrum dues into equity.