Vodafone Idea AGR dues Case LIVE: Supreme Court says Centre can reconsider AGR dues – Shares jump over 8%

Shares of Vodafone Idea Ltd surged sharply on Monday after the Supreme Court observed that there is “no reason why the Centre should be prevented from reconsidering the issue” of Adjusted Gross Revenue (AGR) dues, marking a major positive development for the telecom operator.

The stock rallied 8% to Rs 10.39 in morning trade, compared to its previous close of Rs 9.62, with a market capitalization of Rs 1.11 lakh crore. Vodafone Idea shares have moved within a day range of Rs 9.28 to Rs 10.34 so far.

The court’s observation came during the hearing of Vodafone Idea’s plea seeking relief from additional AGR demands raised by the Department of Telecommunications (DoT). The ruling has sparked optimism about a possible one-time settlement or relief framework, especially as the Centre holds a 49% stake in the company and has emphasized protecting the interests of over 20 crore consumers.

The verdict also buoyed related telecom infrastructure stocks, including Indus Towers, which gained over 3% following the Supreme Court’s remarks.

Shares of Indus Towers Ltd surged over 3% to Rs 374 on Monday following the Supreme Court’s observation that there is “no reason why the Centre should be prevented from reconsidering the issue” of AGR dues — a remark seen as positive for both Vodafone Idea and Indus Towers.

The rally came after the apex court’s statement during the hearing on Vodafone Idea’s plea seeking relief from additional AGR liabilities. The court’s indication of openness to a review by the Centre boosted investor confidence across the telecom ecosystem.

As of 11:45 AM, Indus Towers was trading up 3.44% at Rs 374, compared to its previous close of Rs 361.55, with a market capitalization of Rs 98,820 crore. The stock has traded in a range of Rs 359.65 to Rs 376.90 so far in today’s session.

In a significant relief for Vodafone Idea and Indus Towers, the Supreme Court on Monday observed that there is “no reason why the Centre should be prevented from reconsidering the issue” of AGR dues.

The observation came as part of the ongoing hearing on Vodafone Idea’s plea challenging additional AGR demands raised by the Department of Telecommunications (DoT). The Bench’s statement is being seen as positive for the telecom operator, as it opens the door for a possible resolution or relief framework under the government’s supervision.

Both Vodafone Idea and Indus Towers saw positive sentiment following the court’s stance, as investors interpreted the observation as a favourable signal toward a settlement or relaxation in the long-pending dues matter.

The Central Government, which now holds nearly 49% equity in Vodafone Idea, has taken this position in the company to protect public interest and over 20 crore subscribers across India.

Officials have previously stated that Vodafone Idea’s continuity is crucial for India’s telecom ecosystem, ensuring consumer choice and market competition. Given the scale of its user base and the government’s financial involvement, any adverse outcome or operational disruption could directly impact millions of consumers.

Shares of Vodafone Idea Ltd fell 3.12% to Rs 9.32 on Monday (October 27) ahead of the Supreme Court’s hearing on the company’s plea related to additional AGR dues.

The Supreme Court is expected to take up Vodafone Idea’s plea seeking relief on additional ₹9,450 crore AGR dues shortly. The matter is listed for hearing around 11 AM, following multiple adjournments earlier this year.

Today’s session could be decisive, as the court may either announce its verdict or set the course for further proceedings. The outcome holds significant implications for Vodafone Idea’s financial recovery, given the company’s ongoing funding constraints and heavy debt obligations.

The ongoing case revolves around Vodafone Idea’s petition challenging the Department of Telecommunications’ (DoT) additional ₹9,450 crore AGR demand, which the company claims falls beyond the Supreme Court’s 2019 judgment on AGR liabilities.

The DoT, in its affidavit, argued that the additional dues represented a “gap” from earlier accounting rather than a reassessment, stating that these arose after the finalization of financial accounts and thus weren’t part of the original verdict.

Out of the total demand, ₹2,774 crore pertains to dues for FY18–19 linked to the merged Vodafone Idea entity, while ₹5,675 crore relates to the pre-merger Vodafone Group. Vodafone Idea has disputed the calculations, alleging duplication in certain entries, and requested a fresh reconciliation of accounts dating back to pre-2017.

Earlier this month, reports suggested that the Centre is considering a one-time settlement plan to resolve Vodafone Idea’s pending ₹9,450 crore AGR dues. According to sources, the government is weighing a proposal to waive penalties and interest, followed by potential concessions on the principal amount.

The move, reportedly part of efforts to strengthen India–UK business ties, could provide significant relief to Vodafone Idea, where the government already holds a substantial equity stake. The draft framework for the proposed resolution is said to be under preparation by senior officials.

On October 13, the Supreme Court deferred the hearing on Vodafone Idea’s ₹9,450 crore AGR dues plea after the Centre requested additional time to finalize its stance. The bench observed that the Centre must take a specific position on the issue before the matter proceeds. The court then decided to hear the case after Diwali, scheduling it for October 27, marking today’s much-awaited hearing.

Score update: The Vodafone Idea shares remain in focus ahead of the verdict, as the outcome is expected to play a crucial role in shaping the company’s financial direction.

September 19: The Centre informed the Supreme Court that it does not oppose Vodafone Idea’s plea but emphasized the need for a resolution since it also holds equity in the company. The Supreme Court noted that the proceedings must reach a conclusion and deferred the hearing to September 26.

September 26: Solicitor General Tushar Mehta, representing the Department of Telecommunications (DoT) on behalf of the Centre, requested more time to present the government’s position. Vodafone Idea did not object, and the verdict was postponed to October 6.

October 6: The Supreme Court once again adjourned Vodafone Idea’s plea after the Centre sought an extension. Vodafone Idea’s counsel humorously remarked, “We are not opposed to the grant of more time to the government; we want to celebrate Diwali this year.” The case was rescheduled to October 13.

October 13: The Centre sought additional time during the hearing, following which the Supreme Court deferred the matter to October 27, setting it for post-Diwali consideration.

October 27: The Supreme Court will hear Vodafone Idea’s plea on AGR dues today, marking a potentially decisive moment for the telecom operator.

Shares of Vodafone Idea Ltd opened higher on Monday, October 27, rising 0.62% to ₹9.68 on the NSE, as investors await the Supreme Court’s crucial verdict in the company’s plea concerning additional Adjusted Gross Revenue (AGR) dues of ₹9,450 crore. The case, scheduled for hearing around 11 AM, could play a defining role in shaping the telecom operator’s financial trajectory.

At 9:48 AM, Vodafone Idea’s stock traded in the ₹9.61–₹9.80 range, with a market capitalization of ₹1.05 lakh crore. The verdict follows repeated deferrals, with the previous session on October 13 postponed after the Centre sought more time to clarify its stance.