Supreme Court said – Only VI’s AGR is allowed to be reconsidered: Order not applicable for other telecom companies; AGR outstanding of ₹83,400 crore on Vodafone-Idea

On October 27, the Central Government was allowed to reconsider the AGR dues of VI.

The Supreme Court has made it clear that the order for re-examination of Adjusted Gross Revenue (AGR) dues will apply only to Vodafone-Idea (VI). The order will not be applicable for other telecom companies. The Supreme Court on October 27 had allowed the Central government to reconsider the adjusted gross revenue (AGR) dues of VI.

In a written order issued on November 3, Chief Justice B.R. Gavai and Justice K. A two-judge bench headed by Vinod Chandran said, “Our order of October 27 has been modified only to the extent that the Central Government will be able to re-examine the entire AGR dues of Vodafone-Idea for 2016-17. The rest of the order will remain as it is.”

Why did Vodafone Idea want a re-investigation?

The company had argued in the Supreme Court that many components have been wrongly added in the calculation of AGR. Vi had said that it should be given exemption in interest and penalty and the liability should be reformulated. In this petition, the company had also challenged the additional demand of ₹9,450 crore. Vodafone-Idea currently has AGR outstanding of around ₹83,400 crore.

What is AGR?

AGR (Adjusted Gross Revenue) is the part of telecom companies’ earnings on which the government levies license fee and spectrum usage charge (SUC).

Understand what is the AGR issue in three chapters?

Chapter 1: Beginning of the Case

• The controversy started when the Department of Telecom said that non-telecom revenues (like interest, dividends, sale of assets) would also be included in AGR. But the companies argued that AGR should be just core telecom revenue.
• Regarding this, in 2005 COAI (Cellular Operators Association of India) challenged the definition of AGR in TDSAT (Telecom Disputes Settlement Appeal Tribunal). The case started from here.

Chapter 2- Court’s decision

• Subsequently, in 2015, TDSAT (Telecom Disputes Settlement Appellate Tribunal) ruled that AGR will not include non-telecom revenues (capital receipts, rent, dividends, etc.). Department of Telecom challenged this decision in the Supreme Court.
• In October 2019, the Supreme Court upheld the Department of Telecom’s AGR formula, saying that telecom companies will have to pay the outstanding ADUES of the last 14 years (about ₹1.47 lakh crore).
• In January 2020, the Supreme Court gave 10 years time to pay AGR dues.

Chapter 3- Impact on companies

• The biggest affected companies in paying AGR dues were Vodafone Idea (₹58,254 crore), Bharti Airtel (₹43,980 crore), Tata Telecom (₹16,798 crore).
• Between 2021 and 2024, Vodafone Idea’s financial difficulties increased. VI warned the Department of Telecom that it would not be able to function after FY26 without government help.
• In March 2025, the government converted Vodafone Idea’s spectrum dues worth ₹36,950 crore into equity, giving the government a 49% stake in the company.
• May 2025: Vodafone Idea files petition to waive off outstanding AGR dues. But the petition was rejected.

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