Vodafone Idea (Vi), the third-largest telecom operator, is facing a new battle in the adjusted gross revenue (AGR) dues department. The telco, which already owes thousands of crores in AGR dues to the government, is now being asked to pay an additional Rs 9,450 crore. This additional demand was earlier not calculated, said DoT. Vi has challenged this decision in the Supreme Court, and on September 19, 2025, the Supreme Court said that a hearing on this will be on September 26, 2025.
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The main thing to note here is that the government is the major stakeholder in the company. Thus, the Supreme Court's decision on the matter will be crucial. The court has said that there must be some 'finality' to the AGR proceedings. The issues are being reopened in the court again and again. Even though this is a different issue now, it is about the same thing.
For years, this fight between the government and the telcos about AGR dues has ensued. The possibility of a relief in the matter pushed the Vi stock upwards on Friday. The decision from the Supreme Court will come on Friday this week. Apart from this, the telco is also looking for relief on AGR dues payment from the government.
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The deferred AGR dues will be due by the end of the current financial year. Thus, Vi would fall into a tight situation with respect to paying off dues. The telecom company has been struggling with respect to paying off dues, but the dues it has owed to banks have been cleared fast. This is because Vi wants to raise more funds from the banks. This will only be possible if the current exposure goes down.
