The company has argued that the demand goes beyond the Supreme Court’s earlier ruling on AGR liabilities. The DoT, however, told the court that the dues are not a reassessment. It said the figure arises from gaps identified during the finalisation of financial accounts.

Out of the total demand, Rs 2,774 crore relates to Vodafone Idea’s post-merger entity. Another Rs 5,675 crore pertains to pre-merger liabilities of the Vodafone Group. Vodafone Idea has disputed the computation. It claims some figures were duplicated and has sought a fresh reconciliation of dues dating back to the pre-FY17 period.

The company has also been in talks with lenders for fresh funding. The telco reiterated its commitment to continue capital expenditure. It is also exploring both banking and non-banking funding options. Past government relief measures, such as spectrum payment deferments, reform packages, and conversion of dues into equity, have supported the sector. Vodafone Idea has urged that the current dispute be settled before March 2026 to ensure timely funding.

India's third-largest telecom operator, Vodafone Idea is backed by Aditya Birla Group and Vodafone Group. The company holds 5G spectrum in 17 circles and mmWave spectrum in 16 circles, offering services across 2G, 4G and expanding 5G networks.

On a consolidated basis, Vodafone Idea's net loss stood at Rs 6,608.1 crore in Q1 FY26 higher than Rs 6,432.1 crore in Q1 FY25. Revenue from operations rose 4.9% YoY to Rs 11,022.5 crore from Rs 10,508.3 crore in Q1 FY25.