Voda Idea's objections to license fees totalling Rs 3,273 crore for FY2015–17 are rejected by DoT

6 Oct 2023 , 01:47 PM

The Department of Telecommunications (DoT) has rejected Vodafone Idea’s objections to licencing fee requests of Rs 3,273 crore for the fiscal years 2015–17, further destabilising the already struggling company’s finances.

According to a regulatory filing from the company, ‘DoT has disposed-off the company’s representation and objections with respect to license fee demand of Rs 1,749 crore and Rs 1,524 crore respectively (including interest until March 31, 2023) for fiscals 2015-16 and 2016-17.’

Additionally, the company said that DoT has not yet heeded its request to remedy the mistakes in demands made up to FY 2016–17. According to Vodafone Idea, if the DoT is allowed to change the demands for the time period covered by the Supreme Court’s decision, there are a number of flaws that need to be fixed and which would lower the demand that the Supreme Court crystallized.

The business claimed that it is examining the DoT’s notification before determining its next line of action.

The issue is related to the Supreme Court’s decision on adjusted gross revenue (AGR), wherein the high court ordered older telcos like Vodafone Idea, Bharti Airtel, and others to pay debts in accordance with DoT estimations. 

In July 2021, the top court dismissed a telcos’ plea for a recalculation of dues. Vodafone Idea was required to pay AGR dues totalling Rs 58,254 crore as a result of the court’s refusal, of which it has already paid Rs 7,854 crore.

Following the rejection, Vodafone Idea filed a review appeal in August 2021 asking the Supreme Court for instructions on how to fix these mistakes. The review petition is still underway.

The company had emphasized in the review petition that even unintentional mistakes and increases by DoT to the AGR dues had not been permitted to be remedied. 

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