India's Vodafone Idea had its petition to waive more than $5 billion in debt it owes to the government rejected by the country's top court on Monday, dealing a major setback to the telecoms giant. The company has struggled to pay outstanding spectrum and revenue-sharing dues since a landmark 2019 Supreme Court order widened the scope of revenues on which the payments are assessed.

The Supreme Court has dismissed writ petitions by Vodafone Idea and Airtel for exemption of interest on Adjusted Gross Revenue dues. A bench of Justices JB Pardiwala and R Mahadevan dismissed the pleas calling the petitions "misconceived.

Vodafone Idea shares plummeted after the Supreme Court rejected its plea to waive over $5 billion in interest and penalties on statutory dues. The telecom operator, burdened with $25 billion in net debt,