Tata Communications Receives ₹7,800 Crore Demand Notice from DoT for AGR Dues

The Department of Telecommunications (DoT) has issued a ₹7,827.55 crore show-cause-cum-demand notice to Tata Communications over adjusted gross revenue (AGR) dues for the period from FY 2005–06 to 2023–24, according to a company note dated 17 July 2025. Tata Communications is reviewing the demand, which it says has been revised multiple times and will be legally contested based on licence differences and legal opinion.

Tata Communications Responds to AGR Demand

The company confirmed the notice in its regulatory filing. As per news report, Managing Director A.S. Lakshminarayan stated, "As at 30 June 2025, the company has received 'Show Cause-cum Demand Notices' ('demand notices') from Department of Telecommunications of India aggregating to ₹7,827.55 crore for financial years ranging from FY 2005–06 to FY 2023–24, which have been revised over a period of time."

Out of the total, ₹276.68 crore pertains to the disallowance of deductions claimed by the company on a payment basis. This includes items under the ISP (Internet Service Provider) licence for FY 2010–11, and under the NLD (National Long Distance) licence for FY 2006–07 and FY 2009–10.

Legal Position and Licence Distinction

Tata Communications has already filed appeals related to its ILD (International Long Distance), NLD, and ISP licences. These matters are currently pending before the Supreme Court and the Telecom Disputes Settlement and Appellate Tribunal (TDSAT).

Lakshminarayan clarified, "The company’s appeals are not covered by the apex court judgement dated October 24, 2019, on AGR under the old telecom licence regime called UASL."

He added, "Further, the company believes that all its licences are different from UASL, which was the subject matter of the Hon’ble Supreme Court judgement of October 24, 2019. The company, based on its assessment and independent legal opinions, believes that it will be able to defend its position."

AGR Dues Across the Industry

The AGR issue remains a major point of contention in the telecom sector. As per earlier government estimates, total AGR dues stood at ₹1.65 lakh crore till FY 2018–19. A breakdown as of March 2022 showed Bharti Airtel owing ₹31,280 crore, Vodafone Idea ₹59,236.63 crore, Reliance Jio ₹631 crore, BSNL ₹16,224 crore, and MTNL ₹5,009.1 crore.

Also Read: Tata Communications and AWS Partners to Build AI-Optimised Network in India

Tata Communication Share Price Performance 

As of July 28, 2025, at 11:05 AM, Tata Communication share price is trading at ₹1,716 per share, reflecting a decline of 0.74 %. Over the past month, the stock has gained by 1.50%.

Conclusion

The DoT’s demand on Tata Communications highlights the government’s ongoing enforcement of AGR liabilities. While the company maintains that its licences fall outside the scope of the 2019 Supreme Court ruling, the outcome of its legal battle could influence how AGR cases are approached in future.

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