Vodafone Idea shares tank 7% as SC defers AGR hearing
What's the story
Vodafone Idea's share price plummeted by over 7% today, following the Supreme Court's decision to postpone the hearing in its Adjusted Gross Revenue (AGR) case. The beleaguered teleco had requested the quashing of additional AGR demands for FY17 and before. At the time of market close, Vodafone Idea's stock had fell by 7.3% to ₹8.04.
Government position
Centre doesn't oppose Vodafone Idea's plea
During the previous hearing, the Centre said it doesn't oppose Vodafone Idea's plea on adjusted AGR dues. It stressed that some solution was needed as it too is an equity holder in the company. The Supreme Court had noted that there had to be some finality to these proceedings and deferred the plea to September 26. Today, Solicitor General Tushar Mehta, representing the Centre, sought an adjournment till October 6.
Legal battle
Case based on court's March 18, 2020 order
The case is based on the Supreme Court's March 18, 2020 order which upheld AGR dues till FY17 as determined by the Department of Telecommunications (DoT) and barred operators from reassessment. Despite this ruling, DoT has raised new claims for FY18 and FY19. In its September 8 petition, Vodafone Idea contended that most of the new demand overlaps with periods already settled by the apex court.
Stake details
Government owns nearly 49% of Vodafone Idea
The government now owns 48.99% of Vodafone Idea after converting ₹53,083 crore of dues into equity in February 2023 and April 2025. Of the ₹9,450 crore demand, ₹2,774 crore has been raised against Idea Group and Vodafone Idea (post-merger), while ₹6,675 crore has been directed at Vodafone Group for the pre-merger period. In its plea, the company said that ₹5,606 crore of the fresh demand relates to periods up to FY17 which have already been crystallized by the 2020 order.
Financial burden
Company owes ₹2 lakh crore to government
Vodafone Idea already owes some ₹83,400 crore in AGR dues, with annual installments of ₹18,000 crore starting March. Including penalties and interest, its overall liabilities to the government are estimated at nearly ₹2 lakh crore.