Particle.news
Download on the App Store
23 ARTICLES
·
last wk.

Supreme Court Rejects AGR Waiver Pleas, Pressures Government to Act

India's top court dismisses Vodafone Idea, Bharti Airtel, and Tata Teleservices' petitions, leaving telecom sector in financial peril and urging executive intervention.

Image
Image
Supreme Court Rejects Vodafone Idea's AGR Waiver Plea | Image: Freepix
Image

Overview

  • The Supreme Court of India on May 19, 2025, dismissed pleas by Vodafone Idea, Bharti Airtel, and Tata Teleservices seeking waivers on interest, penalties, and interest on penalties related to AGR dues, deeming the petitions 'misconceived.'
  • The court reaffirmed its stance that AGR relief is a matter for the executive branch, not the judiciary, while declining to interfere with government decisions on potential support for the telecom sector.
  • Vodafone Idea, with total AGR dues of ₹83,400 crore, warned it may face insolvency and cease operations beyond FY26 without additional financial relief or government intervention.
  • The dismissal intensifies scrutiny on the government, which holds a 49% stake in Vodafone Idea, as the end of the payment moratorium in September 2025 looms, requiring annual payments of ₹18,000–20,000 crore.
  • Analysts highlight structural inadequacies in India's insolvency framework for the telecom sector, citing unresolved cases like Reliance Communications and Aircel as barriers to effective resolution.