Vodafone Idea (Vi) is once again embroiled in a legal battle over adjusted gross revenue (AGR) dues, challenging a fresh demand of ₹9,450 crore (approximately $1.13 billion) from the Department of Telecommunications (DoT) in the Supreme Court. The telecom operator argues that this demand, pertaining to the period up to fiscal year 2016-17, contradicts the Supreme Court's earlier rulings that had finalized the dues. Consequently, Vodafone Idea has requested the court to quash the demand and order the DoT to reassess the dues following the "Deduction Verification Guidelines" dated February 3, 2020. The company filed its petition on September 8 and has sought an early hearing.

Vodafone Idea contends that the Supreme Court had definitively determined the AGR dues at ₹58,254 crore, making it binding on all stakeholders. The company claims that the DoT's new demand effectively recalculates dues despite the apex court previously rejecting requests for recalculation. Vi argues that the DoT's reassessment is unjust and arbitrary, as the court had prohibited any re-evaluation of AGR liabilities. The telco highlights discrepancies and potential double-counting in the DoT's calculations. According to petition details, the DoT has raised a demand of ₹5,606 crore, which falls under the 2016-17 period on which the SC had ruled back in 2020, that there will be no recalculation of the dues, setting liabilities for Vodafone Idea at ₹58,254 crore. In this sum of approximately Rs 9450 crore, the majority amount of approximately Rs 5606 crore (as on March 31, 2025) is for the period upto FY 2016-17 which has already been crystalised by the court. The additional demand pertains only to license fee dues.

This legal challenge comes at a critical time for Vodafone Idea, which is already burdened with ₹1.99 lakh crore in payment obligations. These obligations include deferred spectrum payments extending up to FY34 and AGR dues (including interest) payable until FY31. The company's financial strain is further compounded by the upcoming expiration of the government's four-year moratorium on AGR payments in March 2026. After the moratorium, Vodafone Idea will have to begin servicing installments of ₹16,428 crore in AGR dues and ₹2,641 crore in spectrum installments. Vodafone Idea has warned that this liability threatens its financial stability. Earlier this year, Vodafone Idea had approached the apex court with a writ petition seeking waiver of dues to the tune of Rs 45,457 crore, but it was rejected by the SC.

Vodafone Idea's total AGR liabilities stood at approximately Rs 75,000 crore at the end of the June 2025 quarter. Vodafone Idea managed to raise funds from a 2024 follow-on public offer of ₹18,000 crore, required for launching 5G services and expanding 4G services, it continues to lose subscribers to its rivals Reliance Jio and Bharti Airtel.

The outcome of this legal battle could significantly impact Vodafone Idea's future. The company has emphasized that resolving the AGR dispute is crucial for its survival as a going concern. While the government's conversion of over ₹36,950 crore of dues into equity last year provided some relief, its total dues to the government have ballooned to ₹83,400 crore. The Supreme Court is expected to hear Vodafone Idea's plea in the coming weeks.

Shares of Vodafone Idea are expected to be in focus as investors assess the implications of this legal development on the company's long-term liabilities and repayment schedule.