Supreme Court's final AGR order silent on ‘no objection' to govt aid for telcos
New Delhi: The Supreme Court has dismissed writ petitions by Vodafone Idea and Bharti Airtel seeking relief on adjusted gross revenue (AGR) dues, without referencing its earlier oral observation that it wouldn't obstruct any government move to support the financially stressed telecom firms.
During a hearing on 19 May, a bench comprising Justices J.B. Pardiwala and R. Mahadevan had clarified that if the Centre chose to step in, the court would not stand in the way. 'If the government wants to help you, we are not coming in your way," Pardiwala had said.
However, the court's written order, issued on 21 May, makes no reference to that remark, which was widely seen as a green light for possible relief. The omission carries significant implications, as it leaves the government without formal legal backing to intervene in the sector's long-standing dues crisis.
Read this | Supreme Court dismisses Vodafone Idea, Airtel, Tata Teleservices plea for AGR interest waiver
'Oral remarks in court have no binding effect unless reflected in the written order. The judgment does not prohibit the government from formulating independent policy measures to support the telecom sector," said Shiju PV, Senior Partner at IndiaLaw LLP.
'The government retains full authority to provide relief—whether through restructuring, waivers, or rationalisation of dues—so long as it does not directly contravene the Supreme Court's binding 2019 AGR ruling. The way forward now lies squarely with the government," he added.
Analysts say the government can still seek written clarification from the Court to proceed with any relief plan.
'If the government gets written clarification on this from the SC (Supreme Court), it could gain flexibility to waive interest, penalty and interest on penalty; extend the deadline for payment of AGR dues from the current 31st March 2031; and/or rectify calculation errors," said a 20 May note by brokerage IIFL Capital.
'Irrespective of the above, the government also has the option to introduce an ordinance in Parliament to facilitate AGR waiver," the note added.
AGR saga: Where it stands
The Supreme Court on 19 May dismissed pleas by Bharti Airtel, Vodafone Idea, and Tata Teleservices seeking a waiver on interest, penalty, and interest on penalty on pending AGR dues.
Vodafone Idea, which owes ₹83,400 crore in AGR dues, had sought a waiver of ₹45,000 crore comprising interest and penalties. Bharti Airtel and its unit Bharti Hexacom sought relief on ₹34,745 crore out of a total liability of ₹43,980 crore. Tata Teleservices owes over ₹19,000 crore.
In addition, Vodafone Idea owes ₹1.19 trillion in spectrum dues, taking its total dues to the government to over ₹2 trillion as of March-end.
With the four-year moratorium ending in September, payments of ₹18,000 crore a year are set to begin from 31 March 2026—more than twice the company's annual operational cash flow of ₹8,400–9,200 crore.
Read this | Two months after second lifeline, Vodafone Idea again raises survival fears
Mukul Rohatgi, representing Vodafone Idea, had told the court on 19 May that the government cannot help since it is 50% owner of the company, in the backdrop of the Supreme Court judgement in the AGR case.
Solicitor General Tushar Mehta, appearing for the Centre, had said, 'What we have said is that, in view of the judgment of the Lordships, we cannot examine [the relief sought], and it cannot be examined."
The AGR crisis stems from a 2019 Supreme Court ruling that included non-telecom revenue in the calculation of dues, creating a massive mismatch between Department of Telecommunications (DoT) demands and the companies' self-assessed liabilities.
Curative petitions filed by telcos were rejected by the apex court in September 2024.
Also read | It's time telcos walked the talk on fighting fraud and spam–will they?
According to officials, the DoT had at one point considered a proposal to waive 50% of the interest and 100% of the penalties and interest on penalties. That could have reduced Vodafone Idea's dues by ₹52,000 crore and Airtel's by ₹38,000 crore. But the proposal was ultimately shelved amid concerns over possible political backlash.
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