DoT issues Rs 26.83 crore demand notice to Vodafone Idea
Vodafone Idea has received a notice from the Department of Telecommunications demanding Rs 26.83 crore in liquidated damages for allegedly failing to meet minimum rollout obligations linked to spectrum acquired in the 2022 auction.
New Delhi: Vodafone Idea (Vi) has received a notice from the Department of Telecommunications (DoT) seeking payment of Rs 26.83 crore as liquidated damages over the alleged non-compliance with minimum rollout obligations linked to spectrum acquired in the 2022 auction, the telecom company informed stock exchanges on Saturday.
According to the company’s exchange filing, the notice was received on July 31 and relates to the rollout commitments prescribed under the Notice Inviting Applications (NIA) for the 2022 spectrum auction.
The DoT has alleged that the telecom operator failed to meet the stipulated minimum rollout obligations associated with the spectrum allocated through the auction process and has consequently sought liquidated damages of Rs 26.83 crore.
However, Vodafone Idea stated that the notice is currently under review and that it is assessing the appropriate course of action.
“The company is reviewing the notice and evaluating the next steps in this matter,” the firm said in a regulatory filing.
In addition, the telecom operator also clarified that the notice is not expected to have any financial or operational impact on its business at this stage.
The alleged violation relates to network rollout requirements that telecom operators are required to fulfil after the assignment of spectrum under the auction guidelines.
Moreover, the company did not provide further details on the specific circles or spectrum bands covered by the notice.
Shares of Vodafone Idea ended at around Rs 13 apiece on the BSE on Friday, up 1 per cent.
The telecom has touched a 52-week high of Rs 15.35 and a 52-week low of Rs 6.12 on the exchange.
The stock has declined over 10 per cent in the past one month, underperforming the benchmark Sensex, which gained 2.1 per cent during the same period.
