VI’s fate hinges on Supreme Court’s AGR dues hearing today

Vodafone Idea (Vi) is in sharp focus today as the Supreme Court hears its case against the Department of Telecom’s (DoT) fresh ₹9,450 crore AGR demand. Vi says this demand exceeds the amount set by the 2019 Supreme Court verdict on AGR liabilities, arguing that many amounts are duplicated and relate to pre-FY17 dues that were thought settled. The company is seeking a comprehensive reconciliation of dues and has urged for a fresh calculation, highlighting errors in DoT’s assessments.

Meanwhile, DoT maintains that this isn’t a reassessment, but simply a gap identified after closing accounts. The case outcome is critical for Vi, as banks and lenders are holding back fresh funding until there’s clarity on AGR dues. The company’s continued survival now hinges on the Court’s decision, especially since past relief measures—like government equity conversion—have already been implemented, giving the government about 49% stake in Vi. The government has stated its support for the sector is complete, and any further steps rest with the company. Today’s verdict may decide whether Vi’s struggle drags on or whether it faces a rapid shutdown.