Idea-Voda merger hits `4,700cr snag

New Delhi, June 24: The mega-merger deal of Idea Cellular and Vodafone India may not meet the expected June 30 timeline as the telecom department is looking to raise a fresh demand of around `4,700 crore, a source said.

The demand will be raised from Vodafone India before its merger with Idea Cellular.

“Vodafone India had merged its all arm into one company and there are dues of around `4,700 crore related to one-time spectrum charges (OTSC) on the company. DoT will ask Vodafone to either clear dues or furnish bank guarantee before merger with Idea,” an official source told PTI.

In 2015, Vodafone had merged its four subsidiaries Vodafone East, Vodafone South, Vodafone Cellular and Vodafone Digilink with Vodafone Mobile Services, which is now called Vodafone India.

DoT at that time has asked Vodafone to clear OTSC dues worth `6,678 core but the company challenged it in court. Following Supreme Court order, Vodafone had paid only `2,000 crore to get the deal cleared.

The telecom minister Manoj Sinha is learnt to have asked DoT to take legal opinion whether a demand regarding OTSC dues can be sought from Vodafone India. “The DoT has received legal opinion which affirms that a demand can be raised from Vodafone,” the source said.

The official said that final amount is still being worked out, which may involve interest as well and it is likely to be raised next week.