Shares of Bharti Airtel and Vodafone Idea moved higher on June 9 after the Bombay High Court struck down the Centre’s retrospective One-Time Spectrum Charge (OTSC) levy, providing a significant financial boost to both telecom operators. Vodafone Idea rose over 2%, while Bharti Airtel also traded in positive territory as investors reacted to the landmark judgment.

The court invalidated the government’s 2012 decision to impose OTSC on spectrum holdings exceeding 6.2 MHz and ruled that the levy could not be applied retrospectively from 2008. The judgment also set aside the related demand notices and directed the government to return the bank guarantees furnished by the telecom companies. The court observed that authorities failed to establish a legal or contractual basis for imposing the charge retrospectively.

Industry estimates suggest that the ruling could provide combined relief of more than Rs 20,000 crore to Bharti Airtel and Vodafone Idea, ending a dispute that has weighed on the sector for over a decade. Some reports indicate the overall relief could exceed Rs 23,000 crore.

Vodafone Idea is expected to remain in focus following the judgment. In recent months, the company has reported net subscriber additions for three consecutive months, signaling signs of operational stabilization. The telecom operator has also benefited from credit rating upgrades that may improve its access to funding as it continues to invest in network expansion and 5G deployment.

Despite this legal victory, Vodafone Idea continues to face substantial spectrum payment obligations exceeding Rs 1 lakh crore, making future fundraising initiatives an important factor for its long-term growth strategy. Meanwhile, Bharti Airtel has continued strengthening its business through network expansion, digital services growth, and investments in adjacent financial services, reinforcing its position in India’s telecom market.

The Bombay High Court’s ruling marks a significant milestone for India’s telecom sector and removes a long-standing regulatory overhang for two of the country’s largest telecom operators.

At 11:15 am, the shares of Vodafone Idea were trading 0.34% higher at Rs 14.45, whereas the shares of Bharti Airtel shed all their gains and were trading 0.83% lower at Rs 1,798.20 on NSE. 

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