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

Vodafone Idea Ltd (VIL) on Monday said it will be sending a “suitable clarification” to the telecom department

Topics

Voda idea | Department of Telecom | telecom services

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 Department of Telecom (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.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.


We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor