In a major relief for telecom operators Bharti Airtel and Vodafone Idea, the Bombay High Court has quashed the government's demand notices seeking one-time spectrum charges (OTSC) over the levy on spectrum held beyond 6.2 MHz from 2008 onwards.
The ruling could potentially provide a total relief of over ₹24,000 crore to the companies, with Airtel's contingent liability towards OTSC standing at ₹16,500 crore as of March end 2025, including interest of ₹9,954 crore.
Vodafone Idea's exposure was at ₹7,581 crore, as per its FY25 annual report, although it was unclear whether the amount includes interest.
The Bombay High Court, in a 13-year legal battle, allowed petitions filed by the telecom operators and set aside the Centre's decisions of November and December 2012, along with the consequential demand notices issued to the companies.
The court directed that bank guarantees furnished by the operators in connection with the disputed demands be returned and quashed all consequential actions taken by authorities.
The dispute dates back to 2012, when the government decided to levy a one-time charge on spectrum holdings beyond the prescribed threshold, which Airtel and Vodafone Idea challenged before the Bombay HC in 2013.
