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'Shocking That Multinational Companies Filed This' : Supreme Court Rejects Vodafone, Airtel & Tata Petitions Against AGR Dues

19 May 2025, 09:15 AM

The Supreme Court on Monday dismissed petitions filed by Vodafone Idea, Bharti Airtel and Tata Telecom seeking waiver of interest, penalty, and interest on penalty components on their adjusted gross revenue (AGR) dues.

A bench comprising Justice JB Pardiwala and Justice R Mahadevan dismissed the petitions as "misconceived".

At the outset, Senior Advocate Mukul Rohatgi, for Vodafone Idea, sought adjournment of the matter till July, saying that "they were trying to see if something could be done without bothering your lordships."

Justice Pardiwala declined the request, saying, "We are really shocked by the three writ petitions. Really disturbed. It is not expected of a multinational company of this repute..."

Rohatgi said that the Government was now holding 50% ownership of his client-company. "If the Governmment wants to help you, let them. We are not coming in the way. But this is dismissed," Justice Pardiwala said.

Rohatgi replied that the Government was taking the stand that it cannot help because of the judgment of the Supreme Court.

Justice Pardiwala pointed out that the reivew petitions and the curative petitions filed against the AGR judgment have been dismissed. When Rohatgi sought permission to withdraw the petition, Justice Pardiwala said, "We will not permit you to withdraw as well."

Though the petition filed by Tata Telecom was not listed today, the bench took it on board and dismissed it. Senior Advocates Shyam Divan and Arvind P Datar represented Airtel and Tata Telecom, respectively.

In its petition, Vodafone sought a waiver of over Rs 45,000 crore in AGR-related liabilities. Airtel sought waiver of about Rs 34,745 crore.

The issue arises out of the October 2019 judgment of the Supreme Court which upheld the Department of Telecommunications' definition of Adjusted Gross Revenue (AGR), significantly broadening the scope to include non-core revenues. This ruling dealt a major financial blow to telecom operators, who were ordered to pay over ₹1.4 lakh crore in dues, including penalties and interest. Companies like Vodafone Idea and Bharti Airtel, already under financial strain, faced existential threats due to the massive liabilities. Review and modification petitions filed by the telecom firms were dismissed by the Court in early 2020, reaffirming the dues. In September 2020, the Court granted a 10-year timeline for payment of the dues, with an annual installment plan.

Case : VODAFONE IDEA LTD. AND ANR vs UNION OF INDIA W.P.(C) No. 505/2025, BHARTI AIRTEL LIMITED AND ORS vs UNION OF INDIA W.P.(C) No. 512/2025