Vodafone Idea to Give ” Suitable Clarification” to Dot for it’s Show-Cause Notice

Vodafone Idea(VIL), receiving a show-cause notice for non-paying licence fees from the Department of Telecommunications (DoT) said on Monday that a ” Suitable Clarification” would then be sent to the licensee.

“In this regard we wish to submit that payment of license 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,” VIL said in a regulatory filing.

“However, the license also allows the payment to be made with interest on 15th April. To the extent of any payment not made on March 25, will be paid on April 15 with interest,” it added.

VIL clarified the payments of the licence fee are exercises on a daily basis on the basis of a quarterly self-calculation of the income. Payment is generally on the 15th day of the month after the quarter-end, although an estimated payment is requested in the fourth quarter by 25 March

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.