Daijiworld Media Network – New Delhi

New Delhi, May 20: In a significant setback to telecom operators, the Supreme Court on Monday dismissed pleas by Vodafone Idea, Bharti Airtel, and others seeking waivers or recalculation of adjusted gross revenue (AGR) dues, calling them “misconceived.” The court made it clear that statutory payments are non-negotiable, ending legal recourse on the matter.

However, the apex court also said it won’t stand in the way if the Centre chooses to offer relief, giving the government legal leeway to revisit the existing framework.

Legal experts now believe the onus is on the Centre to support the stressed telecom sector. “This allows the government to act without legal hindrance,” said Ketan Mukhija of Burgeon Law.

The judgment comes as Vodafone Idea, the most financially vulnerable of the telcos, faces a steep Rs 18,000 crore AGR bill due in 2026 double its annual operational cash flow. In its plea, Vi had warned it might not survive beyond FY26 without bank support.

Bharti Airtel and its subsidiary had sought relief on Rs 34,745 crore of dues, while Vi wanted a waiver on Rs 45,000 crore out of its Rs 83,400 crore total liability.

Analysts say the government could still waive part of the interest and penalties, or extend the payment deadline to ease cash flow pressure. A four-year moratorium ends in September, with repayments scheduled to resume by March 2026.

Industry watchers believe the verdict could be a stepping stone for executive-led fiscal relief while staying compliant with the court’s stance.