NEW DELHI: The Supreme Court on Monday dismissed petitions filed by Bharti Airtel, Vodafone Idea and Tata Teleservices seeking AGR relief through the waiver of interest, penalty and interest on penalty linked to adjusted gross revenue (AGR) dues.
A bench led by Justice JB Pardiwala termed the petitions “misconceived.”
The ruling against AGR relief came a day after Vodafone Idea, facing severe financial strain, sought a waiver of over Rs45,000 crore in AGR-related liabilities to stay afloat. Bharti Airtel had also approached the court, seeking relief on an “equitable basis.”
Following the court’s decision, Vodafone Idea shares dropped more than 8 per cent to Rs6.75 apiece on NSE.
Bharti Airtel, along with its unit Bharti Hexacom, sought a waiver of Rs34,745 crore in dues linked to interest and penalties.
The company clarified that it was not challenging the Supreme Court’s 2020 ruling on AGR but merely seeking relief from the financial burden arising from it.
The petition argued that unequal treatment of telecom service providers would violate Article 14 of the Constitution and hurt the sector’s financial health.
According to its filing, Airtel and Bharti Hexacom owe a principal AGR amount of Rs9,235 crore.
Adding Rs21,850 crore in interest, Rs3,995 crore in penalties and Rs8,900 crore as interest on penalty, the total demand rises to Rs43,980 crore.
The Department of Telecommunications (DoT), however, pegged the dues at Rs38,397 crore as of March 31.
Vodafone Idea, in a separate petition, cited an AGR liability of Rs83,400 crore, including Rs12,,797 crore as principal, Rs28,294 crore in interest, Rs6,012 crore in penalties and Rs11,151 crore as interest on penalty.
VI says it’s at risk of collapse
The company said it was at risk of collapse without relief, which could impact nearly 200 million subscribers.
While the government had earlier converted about Rs39,000 crore of Vodafone Idea’s dues into equity, the telco still owes around Rs1.19 lakh crore in spectrum and AGR-related liabilities.
Both operators pointed out that the government had already extended relief packages post the 2020 verdict, and urged the court to direct the Centre to avoid insisting on punitive charges.
Airtel had also written to the telecom department inquiring whether its AGR dues of Rs41,000 crore could be converted into equity, similar to Vodafone Idea. The government has yet to respond.
The Supreme Court has consistently backed DoT’s AGR calculations. In February, it dismissed a batch of review petitions seeking corrections in the dues, followed by the rejection of curative petitions in September 2023.
The 2020 verdict had fixed total AGR dues at Rs1.47 lakh crore – comprising Rs92,642 crore in licence fees and Rs55,054 crore in spectrum usage charges.
Around 75 per cent of this was interest, penalties and interest on penalties. The court ordered telcos to pay in annual instalments over 10 years, starting with a 10 per cent upfront payment by March 2021.
It also made clear that no reassessment would be permitted and that any default would attract penalties, interest and contempt proceedings.
