The Supreme Court allowed the Centre to reconsider billions in past dues owed by Vodafone Idea, stoking revival hopes for the loss-making wireless operator that has been weighed down by this lingering dispute.
shares jumped as much as 10 per cent in Mumbai on Monday after the court ruling, touching the highest level since September 2024.
The Supreme Court of India has allowed the government to reassess the demand based on Vodafone Idea’s adjusted gross revenue. Tushar Mehta, the Solicitor General, told the court that the government was willing to do so in the interest of Vodafone’s nearly 200 million users.
The government, which became Vodafone Idea’s 49 per cent shareholder this year through a debt-to-equity swap, had publicly acknowledged the need for a solution last month. Bloomberg News reported earlier this month that India was considering providing relief to the wireless operator, including the possibility of waiving off some of the arrears that now touch nearly 2 trillion rupees ($22.7 billion).
Diplomatic gesture
The court reprieve follows British Prime Minister Keir Starmer’s visit to India earlier this month — his first since the two nations signed a landmark trade deal in July. Relief to Vodafone Idea will also be a calculated diplomatic gesture that can help India cement ties with the UK, as relations with the US under President Donald Trump fray amid the steep 50 per cent import tariffs on it.
Any substantial reduction on these older dues will be a lifeline for Vodafone Idea that hasn’t reported a quarterly profit since 2016 and help attract investors to India’s third-largest wireless operator. It’ll also signal to global investors that New Delhi is committed to remedying its reputation for unpredictable policy measures.
The arrears for years have weighed down the joint venture that was formed by the merger of the British firm’s local unit with billionaire Kumar Mangalam Birla’s Idea Cellular Ltd.
A government counsel told the Supreme Court last month that “some solution may be required” given public funds are now tied up in the carrier.
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