The Supreme Court has once again shut the doors on telecom companies hoping for a review of their adjusted gross revenue (AGR) dues. On Friday, the apex court dismissed review petitions filed by major players like Vodafone Idea and Bharti Airtel, who had sought corrections in their AGR calculations. With this, the companies have exhausted all legal options.
AGR has been a long-running headache for telecom operators. The issue dates back to a 2019 Supreme Court ruling, which upheld the government’s definition of AGR, leading to massive dues for telcos. The companies argued that the Department of Telecommunications (DoT) had made errors in its calculations, failing to factor in payments already made.
In July 2021, the Supreme Court rejected pleas from telecom firms seeking a correction in their dues, which exceeded ₹1 lakh crore. Since then, they have tried multiple times to push for a re-computation—once in 2022 through curative petitions, then again in 2023, both of which were dismissed. Now, with the latest rejection, the legal fight seems to have reached a dead end.
Following the Supreme Court’s decision, telecom stocks took a hit. Vodafone Idea’s share price dropped by 4.16% to ₹8.29 per share, while Bharti Airtel saw a marginal decline of 0.51% to ₹1,705.00 on the BSE. As of 11:35 AM, Vodafone Idea shares were down 4.05% at ₹8.30, and Bharti Airtel was trading 0.15% lower at ₹1,711.10.
Interestingly, just days before this verdict, a media report suggested that the government was considering a relief package. The proposal reportedly includes a waiver of 50% of interest and 100% of penalties related to AGR dues. If such a move comes through, it could ease the financial strain on Vodafone Idea and Bharti Airtel.
(By arrangement with Livemint.com)
