Mumbai: In what could spell trouble for Vodafone Idea (Vi), Indus Towers has informed the Telecom Regulatory Authority of India (Trai) that it may limit services to the loss-making telco because of rising receivables.

The news led to the shares of Vodafone Idea falling nearly 4 per cent in intra-day trades on the BSE. Though it managed to recover some of the losses, the scrip ended at Rs 11.22, showing a fall of 2.35 per cent over the last close.

In the letter to Trai, Indus Towers MD Prachur Sah stated: “Vi’s defaults and actions have put Indus in serious financial constraints and a precarious situation. Should Vi continue to breach its payment obligations, Indus would not only pursue all lawful remedies but also be entitled to mitigate its losses by restricting its services to Vi.”

Vi reportedly owes Rs 7,864.5 crore to Indus Towers that includes interest at the end of September.

Speaking to analysts after its first-quarter results, the Indus management said it may not be able to declare dividends because of the troubles at Vi, which is its major customer.

“Our dividend policy requires us to distribute 100 per cent of the free cash to the shareholders. At this point, it is very difficult for us to predict the free cash flow for the whole year given the number of moving parts,” said Vinod Rao — head business controller — Indus Towers.

“It is capex on the one side but on the other side, it is also the visibility of the collections from a major customer and the funding plan of that customer.

“Unless we sort of get a grip on those factors which are extraneous to us, it is difficult for us to sort of think of dividends at this point,’’ Rao said without naming Vi.