Shares of Vodafone Idea Ltd fell sharply on Monday, October 6, declining over 4% to ₹8.37 apiece on the BSE, as investors turned cautious ahead of a crucial Supreme Court hearing on the telecom operator’s adjusted gross revenue (AGR) dues plea.
What’s happening today
The Supreme Court is set to hear Vodafone Idea’s petition seeking to quash the Department of Telecommunications’ (DoT) demand of ₹9,450 crore in additional AGR dues for the period up to FY2016–17. This follows multiple adjournments in September, with the final hearing now scheduled for today.
Timeline of key hearings
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September 19: The Centre informed the Supreme Court it did not oppose Vodafone Idea’s plea but emphasized the need for a resolution, given the government’s large equity stake in the company.
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September 26: Solicitor General Tushar Mehta, representing the DoT, requested more time to respond, leading the apex court to defer the matter to October 6.
Background on the case
Vodafone Idea, saddled with heavy debt, argues that the additional AGR demand exceeds the scope of the Supreme Court’s earlier judgment and includes elements that were already settled. The company maintains that these new demands amount to reassessment, which the apex court had previously prohibited.
The DoT, however, contends that the additional dues arise from accounting adjustments, not reassessment. The outcome of this case will have a direct bearing on Vodafone Idea’s financial stability, especially since the company continues to face liquidity challenges.
Government’s position
The government, which now holds 49% equity in Vodafone Idea after converting the company’s interest liabilities into shares, has expressed interest in finding a mutually agreeable resolution, but has clarified it is not a promoter shareholder.
Management update
Adding to the developments, Vodafone Idea announced the appointment of Tejas Mehta as its new Chief Financial Officer (CFO) and Key Managerial Personnel (KMP) effective October 6, 2025, following the exit of Murthy GVAS.
At the time of writing, Vodafone Idea shares were down 4.53%, as market participants awaited the Supreme Court’s verdict that could decide the company’s financial course ahead.
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