Will send suitable clarification to DoT over show-cause notice: VodaIdea

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Vodafone Idea Ltd (VIL) on Monday said it will be sending a “suitable clarification” to the telecom department on show-cause notice over non-payment of licence fee in seven circles, and noted that any payment not made on March 25, would be paid on April 15 with interest.

Last week, the (DoT) issued a show-cause notice to VIL over non-payment of licence fee for the fourth quarter of 2020-21, with regard to circles of Bihar, Gujarat, Jammu and Kashmir, Kerala, Maharashtra, Uttar Pradesh (East), Odisha , as well as national long distance.

"We will be sending suitable clarification to DoT with reference to the said show-cause notice," VIL said in a regulatory filing.

VIL 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.

"To the extent of any payment not made on March 25, will be paid on April 15 with interest," VIL added.

As per the notice, last week, DoT directed VIL to show cause by April 12, 2021 why action should not be taken against the company under relevant clauses of licence agreement.

"Failure to perform any obligation(s) under the licence including timely payment of licence fee and other charges due to licensor is breach of licence agreement as per the terms and conditions of the licence agreement," DoT had said.

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