Global Navigation Satellite Systems-Interferometric Reflectometry (GNSS-IR) is an emerging remote sensing technique studied and demonstrated for soil moisture retrieval over bare soil using multipath GNSS data. However, retrieval of soil moisture in the presence of vegetation/crops is still a very challenging task even becoming a more complex problem without using any ancillary datasets to compensate the vegetation effect for soil moisture retrievals in higher crop growth stages. This paper presents a novel multipath phase-based vegetation correction scheme for improved field-scale soil moisture retrieval using L-band data from Navigation with Indian Constellations (NavIC) based on GNSS-IR technique. The proposed three steps vegetation correction scheme categorized the crop as per growth stages for sensitivity analysis of NavIC derived multipath phase as GNSS-IR observables and significantly compensated vegetation effects on multipath phase for improved soil moisture retrievals. The proposed method utilized only multipath phase data as single SNR metrics without any ancillary data sets and validated during complete growth cycle of winter wheat crop (sowing to harvesting stages). It has been shown that the soil moisture retrieved using proposed vegetation correction scheme provides a Pearson correlation coefficient of 0.87 and ubRMSD of 0.0341 m3/m3 with in situ measured soil moisture, which is better than bare scheme with Pearson correlation coefficient of 0.71 and ubRMSD of 0.0480 m3/m3. Overall, proposed scheme has found highly effective for vegetation correction and has shown a good potential candidate for VSM retrievals over crop-covered soil using other GNSS constellations (GPS, GLONASS, Galileo and BeiDou etc.).