Supreme Court Clarifies Vodafone Idea AGR Review Order Applies Only to Vi

The clarification follows the Court’s October 27, 2025, ruling permitting the central government to reconsider Vi’s AGR liabilities. In a written order issued on November 3, a two-judge bench comprising Chief Justice B.R. Gavai and Justice K. Vinod Chandran stated, “Our order dated October 27 has been modified only to the extent that the Central Government may re-examine Vodafone Idea’s entire AGR dues up to 2016–17. The rest of the order remains unchanged.”

Vodafone Idea had sought re-examination on the grounds that certain components were incorrectly included in AGR calculations, requesting relief on interest and penalties and challenging an additional demand of ₹9,450 crore. Currently, the company’s total AGR liability stands at approximately ₹83,400 crore.

AGR refers to the portion of a telecom company’s revenue on which the government levies license fees and spectrum usage charges. The dispute began when the Department of Telecommunications (DoT) insisted that AGR should include non-telecom income such as interest, dividends, and proceeds from asset sales. Telecom firms argued AGR should only reflect core telecom revenues.

The long-standing legal battle saw key rulings, including the Supreme Court’s 2019 decision upholding DoT’s broader AGR definition and directing operators to clear dues totaling around ₹1.47 lakh crore over 14 years. Vodafone Idea has been the most affected, with its financial strain intensifying between 2021 and 2024. In March 2025, the government converted ₹36,950 crore of Vi’s spectrum dues into equity, acquiring a 49% stake in the company.

The latest Supreme Court clarification offers Vi a targeted window for re-evaluating its liabilities while reaffirming that the order does not extend to other telecom players. Analysts say the move could provide temporary financial relief to Vi but does not alter the broader AGR framework governing India’s telecom sector.