While the DoT or the Ministry of Telecommunications haven’t objected to the merger, there have been several delays from the DoT from issuing a clearance owing to the outstanding payments due from Vodafone India. Moreover, the merger of Vodafone’s six subsidiaries done in 2014-15 has also led to some complications in the deal.
DoT insists that Vodafone must settle the outstanding demands of more than Rs. 8,100 crores on account of OSTC (one-time spectrum charges). Vodafone India has settled Rs. 2,450 crores in this amount. However, the balance amount is pending as it has been challenged by the telecom major at the telecom tribunal.
The DoT was concerned about raising the demand for the balance amount due from Vodafone, as it feared it may be in contempt of court.
The DoT has a wide range of views and solutions put in place to settle the issue regarding outstanding dues. The options proposed by the regulator included an undertaking from Ideal Cellular Limited that it would settle the outstanding dues of Vodafone after the merger went through. Another suggestion was that Vodafone India laid down a deposit of Rs. 2,800 crores with the DoT for the deal to be sanctioned with the balance being settled after the tribunal hearings.