The department of telecom has issued a show-cause notice to Vodafone Idea Ltd (VIL) over non-payment of licence fee for the fourth quarter of 2020-21, with regard to some circles, sources said.

The show-cause notice dated April 7, 2021 states that the company has not paid the licence fee for the fourth quarter of 2020-21 (by March 25) for the Bihar, Gujarat, Jammu and Kashmir, Kerala, Maharashtra, Uttar Pradesh (East) and Odisha circles as well as for national long distance telephony.

An e-mail sent to Vodafone Idea on the issue remained unanswered.

However, sources close to the company said that payments had been made towards licence fee and spectrum usage charges for the quarter ended March 2021, last month, and that payment gaps if any, will be completed within the defined timeline.

According to the notice, seen by PTI, the department of telecom (DoT) has directed Vodafone Idea to show cause by April 12, 2021, why action should not be taken against the company under relevant clauses of the licence agreement.

The licence fee is payable in four quarterly instalments during each financial year.

The quarterly instalment of the licence fee for the first three quarters of a financial year is payable within 15 days of the completion of the relevant quarter.

For the last quarter of the financial year, licensees have to pay the licence fee by March 25.