KOCHI: The Supreme Court’s written order on Vodafone Idea’s adjusted gross revenue (AGR) dues has taken much of the shine off what initially looked like a breakthrough for the debt-laden telecom operator.
The window of relief that opened last week for Vodafone Idea now appears far narrower than investors and analysts had hoped.
On October 27, the apex court had allowed the Centre to “reconsider” the AGR liabilities of Vodafone Idea, a move that briefly lifted optimism around the company’s long-running financial struggle. However, the written judgment, issued a few days later, clarified that this reconsideration applies only to Vodafone Idea, and only to an additional AGR demand of about Rs 9,450 crore for the period up to FY2016-17.
The court made it clear that the relief was restricted to the “peculiar facts and circumstances” of the case, notably the government’s 49 per cent stake in the company, and would not automatically extend to other telecom operators such as Bharti Airtel.
Importantly, the order did not touch on Vodafone Idea’s larger requests – including waivers of penalties, interest and interest on penalties – which together form the bulk of its financial burden.
Those liabilities, along with heavy spectrum dues and accumulated debt, continue to weigh on the operator’s fragile balance sheet.
The limited scope of the relief now shifts the focus to the government, which must decide how far it is willing to go in recalibrating the disputed amount. Officials from the Department of Telecommunications (DoT) are expected to seek legal clarity on whether the order permits a broader review or merely a reassessment of the Rs9,450 crore demand.
For Vodafone Idea, the next step will be to formally submit its plea for relief, detailing whether it seeks a recalculation, a partial waiver or an extended payment schedule. Until the government acts, the legal review offers no immediate financial reprieve.
The latest development underscores the uncertainty surrounding Vodafone Idea’s turnaround effort.
What seemed a potential lifeline may, for now, be just a narrow corridor. The coming weeks will reveal whether this partial relief evolves into a meaningful policy shift or proves another false start in the company’s long struggle for survival.
