Vodafone Idea gets Rs 26.8 crore DoT notice for default in spectrum-related rollout obligations

The Telecom Department has issued a notice to Vodafone Idea for payment of Rs 26.83 crore in liquidated damages, citing alleged default in minimum rollout obligations in respect of spectrum allocated under auctions of 2022, the telco said on Saturday.

The company said it is reviewing the notice received on Friday (July 31) and evaluating next steps.

On the details of the notice, issued by the Department of Telecom, Vodafone Idea (VIL) in a BSE filing said that this is for payment of “liquidated damages amounting to Rs 26.83 crore for alleged default in compliance of minimum rollout obligations in respect of spectrum allocated under Spectrum Auction conducted in 2022”.

Currently, the Government is having more than 49 percent shares in Vodafone Idea, controlled by Kumar Mangalam Birla. Government decided to take the shares of the debt-stricken Birla Group firm after converting with the company’s dues of more than Rs 52,000 crore with the Government on AGR (Adjusted Gross Revenue).

Though Government is the largest shareholder, the company is managed by the Birla Group, led by Kumar Mangalam Birla.

The violation pertains to network rollout obligations as specified under the Notice Inviting Applications 2022 (the bid document), which needs to be complied with once the spectrum is assigned. Vodafone Idea, however, said there is no financial or other impact on operations.

“The company is reviewing the notice and evaluating the next steps in this matter,” the filing added.