SC dismisses Voda Idea, Airtel AGR waiver pleas

NEW DELHI: The Supreme Court on Monday dismissed pleas by Bharti Airtel, Vodafone Idea, and Tata Teleservices seeking a waiver on interest, penalty, and interest on penalty, collectively amounting to over 280,000 crore, on pending adjusted gross revenue (AGR) dues.

A bench comprising Justices J.B. Pardiwala and R. Mahade-van called the petitions "shocking" and "misconceived." assert-ing that the relief sought was not legally tenable. "These are writ petitions filed by multinational telecom companies invoking Article 32 of the Constitution We firmly believe they are mis conceived. Dismissed. Justice Pardiwala said. The court also rejected senior advocate Mukul Rohatgi's request to withdraw Vodafone Idea's petition, opting instead to dismiss it outright. Senior advocate Arvind Datar, appearing for Tata Teleservices, sought to be made a party in the matter, but the court dismissed Tata's plea as well.

However, the bench clarified that if the Centre decides to extend relief to the telecom com panies, the court would not obstruct such a move. "If the government wants to help you, we are not coming in your way," Pardiwala said.

Rohatgi, representing Voda fone Idea, told the court that the government cannot help since it is 50% owner of the company, the backdrop of the Supreme Court judgement in the AGR case. 

Solicitor General Tushar Mehta, appearing for the Centre, said, "What we have said is that, in view of the judgment of the Lordships, we cannot examine (the relief sought), and it cannot be examined."

Following the news, shares of Vodafone Idea ended down 8.7% to 6.73 on the BSE, while Bharti Airtel ended up 0.2% to 1,817.40. Tata Teleservices was down 0.5% at 260.35.

 

"With the dismissal of its application, Vodafone Idea is left with no viable options under the current regulatory framework. Its survival now hinges entirely on decisive policy Intervention from the government to prevent the telecom sector from slipping into a duopoly," said Shiju PV. senior partner at India Law LLP "Immediate action is crucial to ensure fair competition and safe-guard the public interest at large. In September 2024, the Supreme Court rejected curative petitions filed by Vodafone Idea and other operators seeking relief from the 2019 ruling.