(BS)
The Supreme Court on Monday dismissed petitions by Bharti Airtel, Vodafone Idea, and Tata Teleservices seeking waivers on interest, penalties, and interest on penalties related to adjusted gross revenue (AGR) dues.
A Bench of Justices JB Pardiwala and R Mahadevan described the petitions as “misconceived” and criticised the companies for approaching the court.
“We are really shocked by these petitions which have come before us. It is not expected of a multinational company. We will dismiss it,” the Bench told senior advocate Mukul Rohatgi, who appeared for Vodafone.
The court also declined to intervene in the Centre’s decision to support the telecom companies.
Telcos sought relief amid financial strain
The ruling came a day after Vodafone Idea filed a plea seeking relief from AGR liabilities exceeding ₹45,000 crore, citing financial distress.
Bharti Airtel also filed an appeal requesting concessions on what it called an “equitable basis”. In its filing, Airtel—along with subsidiary Bharti Hexacom—sought waivers worth ₹34,745 crore in interest and penalties.
The company clarified that it was not contesting the September 1, 2020 AGR verdict, but was requesting relief from the additional burden caused by penalties and accumulated interest.
Vodafone Idea warns of insolvency risk
According to a CNBC-TV18 report, Vodafone Idea has again warned that it may not be able to sustain operations beyond FY26 without additional state assistance.
Despite a ₹26,000 crore equity infusion and the government converting dues into equity, Vi said it has been unable to secure bank financing.
The company told the Centre that, without further intervention, it would not be able to raise funds and may be forced to initiate insolvency proceedings before the National Company Law Tribunal (NCLT).
Vi also warned that the government’s 49 per cent stake in the company could become worthless in the event of insolvency, jeopardising the ₹1.18 trillion in spectrum dues already converted into equity.
