Vodafone Idea Ltd (VodaIdea) has denied reports claiming that the Union Cabinet approved a freeze on its ₹87,695 crore adjusted gross revenue (AGR) dues, saying it has received no communication from the government. The telecom operator also disclosed a goods and services tax (CGST) penalty demand of ₹637.90 crore from CGST authorities in Ahmedabad (south), while separately stating that it expects to recover around ₹5,836 crore from Vodafone group promoters under an amended contingent liability adjustment mechanism (CLAM) agreement.
In a
regulatory filing under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the company says the reports are speculative and clarified that no official intimation had been received.
“We have not received any communication from the government in relation to the above-reported matter. As and when there is any development which requires disclosure, we will do the needful,” Vodafone Idea says in the filing.
The clarification followed an email from the stock exchanges seeking an explanation after a news article in the media claiming that the Union Cabinet had frozen Vodafone Idea’s AGR dues at ₹87,695 crore, triggering sharp movement in the company’s share price during intra-day trade on 31st December.
The market reacted sharply to the reports before the clarification. On Wednesday, Vodafone Idea shares came under heavy selling pressure and fell as much as 15.01%, or ₹1.81, to an intra-day low of ₹10.25 on the BSE.
Earlier in the day, several media reports had suggested that the Union Cabinet had cleared a significant relief package for the debt-laden telecom operator by freezing AGR dues worth ₹87,695 crore as of 31 December 2025. According to these reports, the frozen amount was to be repaid over a long period of 10 years, starting from FY31-32 and continuing until FY40-41, providing temporary relief to the company’s strained finances.
The reports further claimed that the frozen dues would be subject to review by the department of telecommunications (DoT) based on audit findings and deduction verification guidelines, with a government-appointed committee expected to take a final view on the reassessed amount.
However, according to the same reports, the proposed relief did not extend to AGR liabilities relating to FY17-18 and FY18-19. These dues, which were finalised under a 2020 order of the Supreme Court of India, are required to be paid between FY25-26 and FY30-31 under the existing repayment schedule.
Separately, Vodafone Idea says it had entered into an amendment agreement with Vodafone group promoters to settle obligations under the CLAM put in place at the time of the merger between Vodafone India and Idea Cellular in 2017. The CLAM framework governs the treatment of pre-merger contingent liabilities related to legal, regulatory and tax matters.
Under the revised recovery structure, Vodafone group promoters will release ₹2,307 crore in cash over the next 12 months, while the remaining amount is secured through the earmarking of 3.28bn (billion) Vodafone Idea shares for five years. The company clarified that receipt of these amounts does not require any prior payment to the DoT and is expected to improve cash-flow visibility and financial predictability.
In a regulatory filing, the telecom operator says the additional commissioner of CGST from Ahmedabad (south) passed an order under Section 74 of the CGST Act, 2017, confirming a penalty of ₹637.90 crore along with tax demand and applicable interest, alleging short payment of tax and excess availment of input tax credit (ITC) by the company. VodaIdea says it does not agree with the order and will take appropriate legal action against it.
VodaIdea ended Monday 8% higher at Rs11.62 on the BSE, while the 30-share Sensex closed first day of the New Year flat at 85,188 points.
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