DoT issues show-cause notice to Vodafone Idea for non-payment of license fee in seven circles

The telecom department has issued a show-cause notice to for non-payment of licence fee for the fourth-quarter of the previous financial year (FY21).

As per the notice, the struggling telecom operator has not paid the licence fee for seven circles — Bihar, Gujarat, Jammu & Kashmir, Kerala, Maharashtra, Uttar Pradesh (East) and Orissa– along with fee for national long distance licences.

The payment was due on March 25, 2021, as per the notice. ET has seen a copy of the notice.

The DoT has now asked the telecom operator to show-cause by April 12 and why action should not be taken against the company under relevant clauses of the licensing agreement.

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

For the same quarter of the previous year, the telecom operator had paid Rs 1,367 crore as licence fee and spectrum usage charges, while for the first quarter of this fiscal (April-June) it paid Rs 1,200 crore.

Notably, the operator had made an upfront payment of Rs 574.65 crore for spectrum on March 18.


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