Vodafone Idea will shut down if it does not get help from the government, there is also a risk of bankruptcy

Vodafone Idea, which has been under debt trouble, informed the Department of Telecommunications that in the absence of timely help from the government on Adjusted Gross Revenue (AGR) dues, it would not be in a position to operate post the financial year 2025-26.

Vodafone Idea Ltd. (VIL) in a letter addressed to the Department of Telecommunications (DoT) on April 17, 2025, appealed for a new lifeline for itself, stating its return would be impossible in the absence of support. VIL CEO Akshay Mundhra in a letter to Telecom Secretary added that in the absence of timely support from the government for AGR, the company will not be in a position to run beyond 2025-26, as in case of not availing of the bank loan it will not be in a position to go through with the investment plan. If it does fall into such a situation, the operational performance's sustainability through improvements will be halted. The government has the highest 49% share in the company. The government has turned into the largest shareholder in the company by changing the spectrum charges and AGR dues into equity share.

Voda Idea said, if government support is not received and the company is unable to pay AGR dues, then the company will have to go to NCLT and this will be a long process. In such a situation, the value of spectrum assets along with the network will also decrease and telecom service may be disrupted for a short time. If this happens, its 20 crore users will be affected.

The Supreme Court on Thursday agreed to hear a new petition of VIL, in which a demand has been made to waive off AGR dues of about Rs 30,000 crore. The company's lawyer Mukul Rohatgi had requested an immediate hearing from the bench of Chief Justice BR Gavai and Justice Augustine George Masih. The petition may be heard on May 19.