Vodafone Idea Ltd (Vi) has informed the Supreme Court that it will not be able to continue operations beyond FY2025-26 unless it secures fresh bank funding — which remains out of reach due to its unresolved AGR (Adjusted Gross Revenue) dues. The telco has recently approached the Supreme Court seeking a stay on the government's demand for interest and penalties on AGR dues as the moratorium on payments ends in September, according to multiple reports.
Also Read: Vodafone Idea Seeks AGR Relief from Supreme Court, Cites Sector-Wide Crisis
Banks Reluctant to Fund
Vodafone Idea pleads before the Supreme Court for a waiver on massive government dues, with banks refusing loans. On Monday, the struggling telecom operator said in a court petition that it will not be able to operate beyond the current fiscal year without bank funding, which remains elusive as lenders remain wary of its dues linked to AGR. Two months after second lifeline, Vodafone Idea again raises survival fears.
"It is humbly submitted that without bank funding, the Petitioner company (Vodafone Idea) will not be able to operate beyond FY 2025-26, as it does not have the ability to pay AGR instalment of Rs 18,000 crore as per DoT (department of telecommunications) demands due in March 2026," Vodafone Idea said in its petition submitted to the Supreme Court on 13 May, according to Mint, which reviewed the petition.
Also Read: Are Vodafone Idea’s Cheap Plans and Top 4G Network Paying Off? Here’s What Subscriber Stats Show
Vodafone Idea's Request for Waiver
The telecom operator has requested a waiver of over Rs 30,000 crore in penalties and interest and is pressing for an urgent hearing on the matter scheduled for May 19. Citing distress in the telecom sector, the telco claims the sector will collapse without additional government support.
Also Read: Airtel Seeks Urgent AGR Dues-to-Equity Conversion Amid Mounting Promoter Debt
Bharti Airtel Explores AGR Dues Equity Conversio
Meanwhile, Bharti Airtel is also exploring options to ensure a level playing field in the sector, including the possibility of converting its own AGR dues into government equity—similar to the approach adopted earlier by Vodafone Idea.
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