Vodafone Idea has said that it will soon send a clarification note to the Department of Telecommunications (DoT) on show-cause notice over non-payment of licence fee in seven circles. Further, the telco has also said that any payment not made on March 25, 2021, will be paid on April 15, 2021 with interest.
The Department of Telecommunications (DoT) has issued a show-cause notice to Vodafone Idea for non-payment of licence fee for the fourth-quarter of FY21. As per the notice, Vodafone Idea has not paid the licence fee for seven circles — Bihar, Gujarat, Jammu & Kashmir, Kerala, Maharashtra, Uttar Pradesh (East) and Orissa. Further, the telco hasn’t paid the fee for national long-distance licences as well.
On its part, Vodafone Idea has explained that payment of licence fee is regular quarterly exercise based on self-calculation of revenue for each quarter. Generally, the payment is made on 15th day of the month following the quarter-end but in the fourth quarter an estimated payment is required by March 25. However, the licence also allows the payment to be made with interest on April 15.
The DoT had directed Vodafone Idea to show-cause by April 12, 2021 and why action should not be taken against the company under relevant clauses of the licensing agreement.
