Vodafone Idea, India’s third-largest telecom operator, is once again struggling with a severe financial crisis. Vodafone Idea had appealed to the Government of India to waive outstanding dues worth $5 billion (approximately ₹41,000 crore). However, the government rejected the request. Now, Vodafone Idea has approached the Supreme Court to challenge this decision.
Government Refuses Relief to Vodafone Idea
According to a letter accessed by news agency Reuters, Vodafone Idea CEO Akshaya Moondra requested the government to provide relief on interest and penalties. The company’s total dues have reached $9.76 billion, out of which it sought a $5 billion waiver specifically for interest and penalties.
On April 29, the government rejected the plea, stating that while the company’s financial condition is critical, it is not possible to offer such relief under existing policies.
Why Is Vodafone Idea in Deep Trouble?
This crisis began in 2019 when the Supreme Court broadened the definition of Adjusted Gross Revenue (AGR), leading to massive liabilities for telecom companies. Vodafone Idea is one of the worst-hit firms in this dispute.
Due to the AGR verdict, Vodafone Idea had to pay hefty amounts towards spectrum usage charges and revenue-sharing liabilities.
Vodafone Idea Moves Supreme Court, says “Public Interest”
On May 16, Vodafone Idea filed a petition in the Supreme Court, seeking government intervention in public interest. While the petition’s details have not been made public, sources indicate that the company is urging the judiciary to intervene, citing the importance of the sensitive telecom sector.
Vodafone Idea CEO Warns: “Operations May Shut Down After 2025-26”
In a letter to the government on April 17, CEO Akshaya Moondra issued a strong warning:
“If we don’t get financial relief soon, the company may not be able to continue operations beyond 2025-26.“
He further emphasized that Vodafone Idea’s collapse would not only damage India’s telecom industry but also hurt the country’s global reputation and investor confidence.
CNBC-TV18 Exclusive | Sources say that Vodafone Idea has cautioned the govt that the company can't operate beyond FY26 without its support. In case of no support, govt stake’s value will go to nil. Prakash Diwan, Market Expert & Shiju PV, Managing Partner of IndiaLaw LLP weigh… pic.twitter.com/dQa0AOEMxs
— CNBC-TV18 (@CNBCTV18News) May 16, 2025
Government’s Stake Reaches 49%
Earlier, the government had converted some of Vodafone Idea’s dues into equity, increasing its stake to 49% in the company. However, despite this move, the government has refused any further financial aid.
Supreme Court Hearing Expected This Week
A Reuters report suggests that the Supreme Court could hear Vodafone Idea’s case this week. However, the court has previously dismissed multiple appeals from Vodafone Idea related to the AGR dispute.
Is Vodafone Idea Really at Risk of Shutting Down?
While Bharti Airtel and Reliance Jio dominate the market, Vodafone Idea continues to struggle. Factors such as low cash flow, increasing debt, and a declining customer base have weakened the company further.
Vodafone Idea Share Price Update
On May 16, 2025, Vodafone Idea Ltd closed at ₹7.37, marking a 1.94% increase from its previous closing price of ₹7.23. The stock hit a day high of ₹7.54 and a low of ₹7.22.
- Volume Weighted Average Price (VWAP): ₹7.39
- Market Cap: ₹79,848.82 crore
- 52-Week High: ₹19.15
- 52-Week Low: ₹6.46
- Total Turnover: ₹77.21 crore
- Trade Quantity: 1044.34 lakh shares
Also Read: Suzlon Energy: FII Holding Raised Quarterly and Yearly
Conclusion: Will Vodafone Idea Survive?
Vodafone Idea’s future hangs in the balance once again. If the Supreme Court does not grant relief, the company’s shutdown seems inevitable. This situation poses a major test for the government, judiciary, and India’s telecom industry will the country witness yet another major telecom collapse?