In a significant development for the embattled telecom operator Vodafone Idea Ltd. (VIL), the Supreme Court of India has granted the central government the authority to reconsider the reassessment of the company’s Adjusted Gross Revenue (AGR) dues. This decision, announced on Monday, October 27, 2025, sent the company’s shares surging.
A Supreme Court bench, led by Chief Justice of India B.R. Gavai, clarified that the matter of VIL’s AGR dues falls within the “policy domain of the Union of India.”
“We clarify that this is in the policy domain of the Union… There is no reason as to why the Union should be prevented from doing…,” Justice Gavai stated. “With that view of the matter, we dispose of the writ petition.”
Government’s Stake and Consumer Interest Key to SC Decision
The apex court’s order was passed specifically because the Centre holds a 49% equity stake in Vodafone Idea after converting a portion of the telecom major’s pending dues into government equity.
Solicitor General of India Tushar Mehta informed the top court that the government’s decision to acquire a stake was partly motivated by the need to protect the 20 crore consumers who would otherwise suffer. “The consumers would suffer…they have concerns…” he argued.
The Supreme Court explicitly stated that the order allowing the reconsideration was being passed only because the Union government had infused equity into the company and was acting in the interest of its vast consumer base.
Understanding the Vodafone Idea AGR Case
AGR (Adjusted Gross Revenue) is a metric used by the Department of Telecommunications (DoT) to calculate the crucial licence fees and spectrum-usage charges paid by telecom operators.
The core of the dispute has always been the method of AGR calculation:
- Telecom Operators’ Argument: Only “core telecom revenue” (from services like calls and data) should be included.
- DoT’s Stand: Non-telecom revenue, such as rental income, profits from asset sales, and other non-core revenue, must also be counted in the AGR.
In an October 2019 landmark judgment, the Supreme Court upheld the DoT’s broader interpretation, which drastically increased the financial liabilities of all Indian telecom players.
Subsequently, on March 18, 2020, the Supreme Court finalised Vodafone Idea’s AGR dues up to the financial year 2017, based on DoT’s calculations, and barred any reassessment or self-assessment of those dues.
Current Debt Burden
As of the update date, Vodafone Idea’s AGR dues are estimated at a staggering ₹83,400 crore. The company’s total debt—including penalties, interest, spectrum and licence fee, etc.—stands at an overwhelming ₹2 lakh crore.
In May 2025, the Supreme Court had rejected petitions by VIL and other operators that sought a waiver of interest and penalties on the AGR dues. Vodafone Idea has consistently argued that the immense burden of these dues “threatens its survival,” stating it “cannot operate beyond FY26” without relief. The latest Supreme Court order offers a crucial window for relief through government intervention.