Non-payment of licence fee: DoT issues show-cause to Voda Idea

Our Bureau Mumbai | Updated on April 08, 2021

The Department of Telecommunications (DoT) has issued a show-cause notice to Vodafone Idea Ltd (VIL) for non-payment of licence fee for the fourth-quarter of the previous financial year (FY21).

The operator has not paid the licence fee, which was due on March 25, for seven circles (Bihar, Gujarat, Jammu & Kashmir, Kerala, Maharashtra, Uttar Pradesh (East) and Orissa), and fee for national long distance licences, DoT said in a letter to VIL.

Action under pact

The licencor has asked VIL to show-cause by April 12, why action should not be taken against the company under relevant clauses of the licensing agreement.

According to the Unified Licence Agreement, the licence fee has to be paid in four quarterly installments during the financial year.

For the last quarter of the fiscal, the licensee should pay the fees by March 25, based on the expected revenue for the quarter. For the same quarter of the previous year, VIL had paid ₹1,367 crore as licence fee and spectrum usage charges, while for the first quarter of this fiscal (April-June) it paid ₹1,200 crore.

On March 18, the company had made an upfront payment of ₹574.65 crore for spectrum.

Published on April 08, 2021

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