Vodafone Idea Ltd (VIL) landing up in the National Company Law Tribunal (NCLT) cannot be ruled out, which could be triggered by the operator approaching the tribunal or the Department of Telecommunications (DoT) invoking bank guarantees, according to a report by IIFL Securities. 

The current promoters will have to cede ownership and more operational disruption could result. Media reports had mentioned that DoT, in its plea, had warned that a VIL shutdown and resulting mass number porting could overwhelm the other surviving telcos – at a time when the economy may face pressure from COVID-19, this is one disruption the country could have done without, the brokerage firm said in its report. 

Telcos have to furnish bank guarantees covering two quarters of License Fee (LF) and Spectrum Usage Charges (which adds up to ₹2,000 crore for VIL) and the next annual instalment of spectrum payments (₹15,000 crore for VIL to be paid in FY23 after the moratorium).


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