Shares of Vodafone Idea surged as much as 12.5% on the NSE on Friday, as reports claim that the government does not have any opposition in the telecom service provider’s plea to the Supreme Court in relation to its adjusted gross revenue case.

At 14:06, VI shares were trading at ₹8:40, up 7.14% from the Thursday close of ₹7.84. The stock opened at ₹7.91 and reached an intraday high of ₹8.82 on the NSE. The shares are up marginally 0.9% year till date.

According to media reports, the central government has informed the apex court that it does not oppose telecom operator’s plea challenging a fresh ₹9,450 crore AGR demand.

The government reportedly has indicated that a resolution is required, especially since it holds an equity stake in the company following the conversion of a part of the operator’s dues into equity in recent years.

Further, a bench comprising Chief Justice B R Gavai and Justices K Vinod Chandran and NV Anjaria has deferred the hearing on case to September 26.

What is the AGR case?

Adjusted gross revenue, or AGR, is the revenue-sharing mechanism between the government and the telecom operators. Under this, the operators pay a certain licensing fee and spectrum usage fee to the DoT, which is a percentage of the telco’s gross revenue or ApGR (Applicable Gross Revenue). However, disputes over the definition of AGR have been ongoing since 2005.

In October 2019, the Supreme Court had upheld the Department of Telecommunications’ (DoT) definition of AGR, which stated that AGR must include non-core revenue, ending a 14-year dispute. This definition would have increased the dues telecom operators owed to the government, particularly due to increased interest payments.

In September 2020, the apex court allowed the companies a 10-year window to repay outstanding liabilities, estimated at around ₹93,520 crore, while mandating that 10% of the dues be cleared by March 31, 2021, and the rest in annual instalments until FY 2030-31.

Subsequently, in July 2021, the court dismissed pleas by Vodafone Idea and Bharti Airtel seeking correction of alleged errors and duplication in DoT’s calculations. The court held that DoT’s assessment was final and not open to reassessment.

Despite this, on September 8, 2025, Vodafone Idea filed a fresh plea requesting the court to direct DoT to re-assess and reconcile AGR dues up to FY 2016-17, citing the Deduction Verification Guidelines of February 3, 2020.

Vodafone Idea has stated previously also that the new demands will threaten the survival of the company, putting at risk services to 198 million subscribers

Meanwhile, the exchanges have sought clarification from Vodafone Idea regarding the developments.