Abhishek Sinha
Shares of Vodafone Idea Ltd (VIL) dropped sharply on Monday, sliding over 5% to ₹8.35 apiece on the National Stock Exchange (NSE) after the Supreme Court once again deferred the hearing on the company’s long-pending Adjusted Gross Revenue (AGR) dues case.
Supreme Court Defers AGR Hearing
The apex court will now take up Vodafone Idea’s plea on October 13, after the government sought additional time to prepare its submission. According to reports, the telecom operator’s counsel did not object to the government’s request for an extension.
This marks another delay, as the court had earlier postponed the matter on September 26 following a similar request from Solicitor General Tushar Mehta, who represented the Centre.
Possible One-Time Settlement Under Discussion
According to a Bloomberg report, the central government is exploring a one-time settlement plan to resolve the massive AGR dues dispute, which has dragged on for years. The proposal reportedly includes:
- Waiver of interest and penalties
- Concessions on the principal amount
If approved, this move could significantly reduce Vodafone Idea’s total AGR liability, which currently exceeds ₹2 lakh crore, including interest and penalties.
Fresh Plea and Government’s Stake
Vodafone Idea has filed a fresh plea challenging the Department of Telecommunications (DoT) demand of ₹5,606 crore related to the financial year 2016–17. The company has also requested the government to reassess and reconcile AGR dues up to FY2016–17 in line with Deduction Verification Guidelines issued in February 2020.
During the hearing, Solicitor General Mehta informed the bench that the government now holds nearly 50% equity in Vodafone Idea, making it directly invested in the company’s revival.
“Some solution may have to be found out, subject to your lordships’ approval. If it can be kept next week, we can think of some solution,” Mehta told the court.
Vodafone Idea’s AGR Liability
Vodafone Idea’s AGR dues stand at approximately ₹83,400 crore, with annual payments of around ₹18,000 crore scheduled to begin from March 2026. The Supreme Court had earlier granted telecom operators a 10-year timeline (2020–2030) to clear a total of ₹93,520 crore in AGR-related dues.
The DoT has also proposed additional relief measures, including:
- A two-year moratorium extension on payments,
- Reduced annual payouts, and
- Waiver of penalties and interest on delayed dues.
Market Reaction
At 12:00 p.m., Vodafone Idea shares were trading at ₹8.69 apiece, down 1.47% on the NSE, after hitting an intraday low of ₹8.35.
Over the past month, the stock has gained 18%, while it has risen 17% in the last six months. However, on a year-to-date basis, the stock is up only 8%, reflecting continued volatility amid regulatory uncertainty.
Outlook
Market analysts note that while government support and a potential one-time settlement offer hope for Vodafone Idea’s long-term recovery, repeated hearing delays have dampened investor sentiment in the short term.
The company’s financial turnaround largely depends on AGR relief, fund infusion, and subscriber growth amid fierce competition from Reliance Jio and Bharti Airtel.
