Top Court Dismisses Vodafone Idea’s AGR Plea; Stock Drops 8%

The apex court today dismissed the pleas of telecom majors including Vodafone Idea, Airtel and Tata Teleservices. These telcos sought the waiver of adjusted gross revenue (AGR) dues.

Calling the pleas as “misconceived”, the bench comprising Justices J B Pardiwala and R Mahadevan told senior advocate Mukul Rohatgi, appearing for Vodafone Idea, “We are really shocked by these petitions which have come before us. It is not expected of a multinational company. We will dismiss it.”

As of 1:20 pm, shares of Vodafone Idea were trading 8% lower at ₹6.76. Indus Towers was down by 3% at ₹388 apiece.

Bharti Airtel and Bharti Hexacom requested for a waiver for ₹34,745 crore in adjusted gross revenue-related dues. Vodafone Idea sought a waiver of ₹45,457 crore in dues.

Currently, the centre holds 49% stake in Vodafone followed by a rent equity conversion of interest dues, Rohatgi said.

“The present writ petition does not seek review of the judgment but only seeks waiver of rigors of payment of interest, penalty and interest of penalty under the Judgment,” the company's plea said.

The petitioner, therefore, sought appropriate directions to the Centre to “act fairly and in public interest” and not insist on the “payment of interest, penalty and interest on penalty on AGR dues.”

Vodafone Idea owns about 18% of the total market share of mobility subscribers in the country.

“Even post this conversion of dues, Government of India has dues in respect of spectrum of approx Rs 1,19,000 crore in addition to AGR dues, to be recovered from the Petitioner Company,” it said.

The Supreme Court had earlier declined to reconsider its 2021 judgment, which dismissed the petitions filed by telecom giants like Bharti Airtel and Vodafone Idea seeking correction of alleged errors in the computation of their AGR dues.