India’s Supreme Court gave the government a green light to again review Vodafone Idea’s adjusted gross revenue (AGR) liabilities, a significant short-term win for the debt-laden company.

In a stock market filing, the operator stated the Supreme Court’s permission for the government to consider its “grievances on the issues relating to AGR” is a “positive development”.

“We look forward to working closely with the Department of Telecommunications to resolve this matter,” the operator stated.

The court noted its decision was impacted by concerns over Vodafone Idea’s future viability and its nearly 200 million customers. The government holds a 49 per cent equity stake in the operator.

Vodafone Idea appealed to the Supreme Court for relief on its massive AGR dues in May.

It claimed without the AGR liabilities being resolved, it was unable to secure funding from banks and would not be able to pay an INR180 billion ($2 billion) instalment to the Department of Telecommunications in March 2026.

In April, the government increased its stake in the operator from 26.4 per cent to 49 per cent, converting INR369.5 billion of its outstanding spectrum auction liabilities to equity.

The court decision also could impact Bharti Airtel’s AGR dues.