Vodafone Idea has filed an interlocutory application amending its original writ petition filed on September 18. Through the amended petition, the telco has urged the Supreme Court to scrap the penalty, interest and interest on penalty that weigh down its adjusted gross revenue (AGR) dues.
Vodafone Idea’s total obligations to the government stand at nearly Rs 1.99 lakh crore as of June end and large instalments are due in FY26.
What did the telecom company say?
The telco said it remains willing to pay the principal sum, but called the additional charges unjustified, given the uncertainty over what was owed.
Vodafone Idea drew a parallel with the SC’s 2024 Mineral Area Development Authority ruling, where penalties and interest were struck down in a protracted dispute over mineral rights taxation. The company said its situation is similar, as both the Department of Telecommunications (DoT) and operators were, for years, unsure of the correct liability.
Further, it highlighted that when DoT filed its statement of dues in 2020, it had itself cautioned that the numbers were subject to revision. Yet the apex court froze the company’s liability at `58,254 crore.
Despite this crystallisation, DoT subsequently raised fresh demands for the same period, underlining that the figures were never final. In such circumstances, Vodafone Idea maintained, it cannot be treated as a defaulter attracting a penalty.
What is the larger case about?
The fresh plea comes as the company continues to contest revised AGR dues. On September 9, it filed a writ petition against additional demands of nearly `10,000 crore, arguing these went against the Supreme Court’s 2020 judgment, which had brought finality to AGR liabilities up to FY17.
The case was taken up on September 19, when Solicitor General Tushar Mehta, appearing for the government, acknowledged that “some solution may have to be found out,” noting that the Centre now holds close to 50% in the debt-laden operator. The bench led by Chief Justice BR Gavai deferred the matter to September 26, but it was subsequently pushed to October 6 at the government’s request for more time.
Investors will be watching closely to see whether the court is willing to extend to telecom the same leeway it granted in the mineral rights case, a decision that could have a significant bearing on the company’s stock.
In May, Vodafone Idea and Bharti Airtel had filed similar writ petitions asking for waiver of penalty, interest and interest on penalties in the AGR dues case. The petition, however, was dismissed by the Supreme Court at the time.
Vodafone Idea stock rallied 2.74% on Monday, ending the day at `8.24 per share.