Vodafone Idea and Bharti Airtel seek Supreme Court relief from massive AGR dues. Telcos warn of financial crisis amid growing pressure. SC hearing next week could change the game for India’s telecom sector.
Telecom Giants Struggle Under AGR Burden
Vodafone Idea takes a high-stakes court case at the Supreme Court of India to ask for reprieve from colossal Adjusted Gross Revenue (AGR) liability. The company, providing over 19 crores subscribers, has sought an excusing of more than ₹45,000 crore relief, principally on interest, penalties, and compound interest. Vodafone Idea once again threatened the top court that its inability to breathe financially will take us into a larger crisis, which could impact millions of customers.
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Bharti Airtel and Hexacom Knock Supreme Court’s Door Too
Less than a week after Vodafone Idea, Bharti Airtel, and its joint entity, Bharti Hexacom, have now entered the legal fray. In their petition filed just days after Vodafone’s, AGR-related liabilities are causing them to die in India’s commercial telecom market, which is fiercely competitive. The firms said they are acutely under pressure to fulfill their operational functions and sustain the business over the long term in the face of the heavy burden.
10-Year Timeline, ₹43,980 Crore Liability
The Bharti Group has articulated scale of the pressure it’s under. Post the Supreme Court verdict on AGR in 2019, Bharti Airtel was hit with a huge bill of ₹43,980 crore (some how way up from original ₹9,235 crore with interest and penalties) after the verdict on AGR. They are still in a government order payment plan that goes until March, 2031 but even that may not be enough unless they get more help.
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Telcos Highlight Government Contributions
In the larger attempt to bolster their argument, Bharti and Vodphone Idea have highlighted their substantial revenue contribution to the public exchequer. Airtel claims to have generated ₹75,000 crore in the form of license fee and litigation settlement over past decade. As per one report, they have paid ₹22,000 crore in GST in FY 2024-25- as a mark of their worth to the economy.
Supreme Court Hearing Could Reshape Telecom Future
Monday is the day the Supreme Court will hear Vodafone Idea’s request, and so far industry watchers see this may impact course of telecom sector in India for long. Thousands of crores, looming collapse of companies and them threatening to take it to the apex courts as there is far more at stake than just numbers, the deciding factor is survival competition and the lifeline for billion Indians.