The Department of Telecommunications (DoT) has issued a notice to Vodafone Idea seeking payment of ₹26.83 crore as liquidated damages over an alleged default in meeting minimum rollout obligations linked to spectrum allocated in the 2022 auction.
Vodafone Idea said in an exchange filing that it received the notice on July 31 and is currently reviewing it and evaluating the next steps. Vodafone Idea also said the demand is not expected to materially impact its financial position and that its day-to-day operations remain unaffected.
Vodafone Idea said that the demand is in relation to the alleged non-compliance with minimum rollout obligations for spectrum acquired in the 2022 spectrum auction. The rollout obligations were specified in the Notice Inviting Applications (NIA) 2022, the bid document governing the auction. Telecom operators must meet these obligations after the spectrum is assigned to them.
Vodafone Idea said it is examining the notice before deciding on its course of action. The company did not provide further details on the alleged default.
2022 SPECTRUM AUCTION FOR 5G ROLLOUT
The 2022 spectrum auction was India's first sale of 5G airwaves and the country's largest spectrum auction at the time. Vodafone Idea acquired spectrum in selected telecom circles, while Reliance Jio and Bharti Airtel bought larger quantities.
The telecom operator also participated in the June 2024 spectrum auction, acquiring 30 MHz of spectrum for ₹3,510.40 crore. The auction primarily helped telecom companies renew spectrum holdings that were nearing expiry.
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