Mumbai: Vodafone Idea (Vi) has received a demand notice of ₹26.83 crore from the Department of Telecommunications (DoT) over alleged non-compliance with minimum rollout obligations linked to spectrum acquired in the 2022 auction.
The telecom operator informed stock exchanges that it received the notice on July 31. The demand relates to rollout commitments prescribed under the Notice Inviting Applications (NIA) governing the 2022 spectrum auction.
According to the DoT, Vodafone Idea failed to meet the minimum rollout obligations associated with the spectrum allocated through the auction process. As a result, the department has sought liquidated damages of ₹26.83 crore.
Company Reviewing the Notice
Vodafone Idea said it is currently examining the notice and evaluating the appropriate course of action.
In its regulatory filing, the company stated that it is reviewing the matter before deciding on its response. It also clarified that the notice is not expected to have any immediate financial or operational impact on the business.
The company did not disclose the telecom circles or spectrum bands covered by the alleged violation.
Rollout Rules Under Auction Guidelines
Telecom operators that acquire spectrum through government auctions are required to meet specified network rollout obligations within prescribed timelines. These conditions are intended to ensure timely expansion of telecom services and efficient use of spectrum resources.
Failure to meet these obligations can result in the imposition of liquidated damages under the auction terms.
Stock Performance
Vodafone Idea shares ended at around ₹13 on the BSE on Friday, gaining nearly 1% during the session.
The stock has traded between a 52-week high of ₹15.35 and a 52-week low of ₹6.12. Over the past month, it has declined by more than 10%, underperforming the benchmark Sensex, which has gained around 2.1% during the same period.
