Vodafone Idea shares experienced significant volatility, initially falling 16.00% from daily highs before recovering slightly to close 8.50% lower at ₹11.03. The stock had earlier hit the lower circuit of 15.00% at ₹10.25 following the Union Cabinet's decision on the company's adjusted gross revenue (AGR) dues relief package.

Cabinet Decision Details and Market Impact

The Union Cabinet decided to freeze Vodafone Idea's AGR dues at ₹87,695.00 crore, falling short of market expectations for a waiver. The payment structure includes a five-year moratorium, with staggered payments beginning from financial year 2031-32 and extending to financial year 2041-42. The market had been expecting an AGR waiver of at least 50.00%, which contributed to the negative reaction.

Expert Commentary on Relief Package

Gurmeet Chadha of Complete Circle welcomed the government's move, stating that it demonstrates the government's commitment to preventing a duopoly in the telecom sector. "The government has made it clear that they would not want a duopoly in an important sector like telecom. Overall debt is upwards of ₹2.00 lakh crore. The AGR dues are around ₹87,000.00 odd crore," Chadha noted.

Senior Supreme Court Advocate HP Ranina described the decision as "the best New Year's gift" for Vodafone Idea, emphasizing that no legal hurdles are expected since the Supreme Court had previously indicated the government's freedom to take measures to save the company.

Reassessment Process and Government Stake

The frozen AGR dues will be reassessed by the Department of Telecommunications based on Deduction Verification Guidelines. The outcome will be decided by a government-appointed committee, with decisions binding on both parties. The government currently holds a 49.00% stake in Vodafone Idea, making it the largest public shareholder.

Legal and Strategic Implications

Sanjay Asher, Senior Partner of Crawford Bayley & Co., described the development as "excellent news" for Vodafone Idea and its stakeholders. He emphasized that the staggered payment structure will provide breathing room for the company, with minimal legal issues anticipated going forward. The official cabinet document states that these measures will enable orderly payment of dues while protecting the interests of the company's 20.00 crore customers and maintaining competition in the telecom sector.

Vodafone Idea Limited has received a Goods and Services Tax (GST) order imposing a penalty of ₹32.22 lakh from tax authorities. The telecom operator disclosed this development through a regulatory filing on December 30, 2025, under SEBI listing regulations.

GST Order Details

The order was issued by the Assistant Commissioner of State Tax, Guwahati Unit-B-2, under Section 73 of the Central Goods and Services Tax (CGST) and State Goods and Services Tax (SGST) Act, 2017. The penalty relates to alleged excess availment of Input Tax credit by the company.

Company's Response

Vodafone Idea has clearly stated its disagreement with the tax order. The company indicated it will pursue appropriate legal remedies to seek rectification or reversal of the order. This stance suggests the telecom operator believes the allegations are unfounded and plans to challenge the decision through proper legal channels.

Financial Impact

According to the company's disclosure, the maximum financial impact would be limited to the extent of tax demand, interest, and penalty levied under the order. The total penalty amount of ₹32.22 lakh represents the confirmed penalty, with additional demand and applicable interest also forming part of the order.

Regulatory Compliance

The disclosure was made pursuant to Regulation 30 of SEBI Listing Obligations and Disclosure Requirements Regulations, 2015. Company Secretary Pankaj Kapdeo signed the regulatory filing, ensuring compliance with mandatory disclosure norms for listed entities regarding significant legal and tax developments.