DoT asked to adjust Rs 755.5 crore collected from Vodafone Idea

NEW DELHI: In a big relief to telecom service provider Vodafone Idea, the telecom tribunal directed the Department of Telecommunications (DoT) to adjust the excess Rs 755.52 crore collected from the telco earlier. The amount taken from the telco, as part of its earlier merger-related liabilities, is against its statutory licence fee and spectrum usage charge (SUC) dues, it said.

 “…we hereby direct the respondent to adjust Rs 755.52 crore towards liability of this petitioner (read: Vi) for licence fee and towards spectrum usage charges (SUC) within 15 days from today,” read the order of the Telecom Disputes Settlement & Appellate Tribunal (TDSAT).

The telco, in 2019, filed a challenge with the tribunal against the Department of Telecommunications (DoT)’s demand of Rs 3,926.34 crore related to spectrum liabilities from the merger of Vodafone Mobile Services and Vodafone India with Idea Cellular five years ago.

Then, the government re-evaluated Vi’s dues, reducing the amount to Rs 3,170.82 crore.

However, as Vi had already deposited the originally demanded Rs 3,926.34 crore “under protest,” the tribunal has directed the DoT to adjust the excess amount collected against Vi’s current statutory dues.

According to the TDSAT order, the initial demand of Rs 3,926.34 crore in July 2018 was associated with spectrum holdings (of the merging entities) below 4.4 MHz, specifically “against the differential between the entry fee paid and market-determined price.”

The approval for the merger of the former Vodafone Mobile Services and Vodafone India with Idea Cellular was granted with certain conditions, and the government’s calculated total liability was Rs 3,926.34 crore, as per a communication dated July 9, 2018, noted in the TDSAT order.

The merger of Vodafone Idea was completed at the end of August 2018.