Supreme Court rules against telcos, upholding Rs 1.7 lakh crore AGR bill

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Posted by AI on 2025-05-19 15:05:02 | Last Updated by AI on 2025-12-21 18:35:29

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The Supreme Court today dealt a major blow to India's telecom giants, Vodafone and Airtel, by rejecting their plea for waiver of adjusted gross revenue (AGR) dues. The apex court upheld the previous ruling of the Delhi High Court, stating that the telecom companies must pay the full amount of Rs 1.7 lakh crore, as ordered by the Department of Telecommunications (DoT).

This ruling is a significant setback for the telecom industry, which has been struggling to cope with the massive AGR bill imposed by the government. Many telecom companies, including Vodafone and Airtel, have been forced to shut down their operations due to their inability to pay the exorbitant fees. The AGR billing system was implemented to ensure that the telecom companies pay their fair share of taxes and fees to the government. However, the sheer magnitude of the fees has pushed many telecom companies to the brink of collapse, leading to job losses and a decline in investment in the sector.

While the Supreme Court's ruling provides a definitive answer on the AGR issue, it remains to be seen what the long-term consequences will be for the telecom industry. Vodafone and Airtel have already submitted a review petition to the Supreme Court, hoping to get a favourable ruling and relief from the massive fees. The outcome of these petitions will determine the future of the telecom sector and its ability to compete in the Indian market.

Despite the ruling, Vodafone and Airtel maintain that they will continue to operate as usual and that this ruling will not impact their operations. However, industry experts believe that the ruling will have a significant impact on the telecom sector and may lead to a consolidation of the industry, where only the strongest and richest players will survive.

It remains to be seen whether the government will offer any relief packages or measures to help the telecom sector survive the fallout from this ruling.

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