Vodafone Idea has secured a major legal victory. Bombay High Court quashed demand notices issued by the Department of Telecommunications (DoT) seeking one-time spectrum charges (OTSC) worth Rs 2,113 crore.
Vodafone Idea in its regulatory filing said that the court has directed the DoT to return the bank guarantees submitted by the company against the disputed demand.
The Bombay High Court on Monday quashed the Centre’s 2012 decision to impose a one-time spectrum charge for spectrum held above 6.2 MHz from 2008 onwards, questioning its source of power to make such a call.
“Bombay High Court, on 8 June 2026, passed an order quashing the Demand Notices issued by Department of Telecommunications (“DoT”) imposing One Time Spectrum Charges (‘OTSC’) on the Company (erstwhile Idea Cellular) and erstwhile Spice Communications (since merged with the Company), aggregating to Rs 2,113 crores and also ordered return of Bank Guarantee(s) given to DoT,” Vodafone Idea said.
Here’s what the case is about
On November 8, 2012, the Union Cabinet took a decision that one-time charge would be levied for spectrum held beyond 6.2 MHz from July 2008 onwards. Consequently, demand notices were issued to the petitioners (Bharti Airtel and Vodafone Idea) specifying the amounts payable by them towards one-time spectrum charge. According to Vodafone Idea’s regulatory filing DoTs also sought charges for spectrum held beyond 4.4 MHz from January 1, 2013, until the expiry of the respective licences.
The telecom companies moved the HC in January 2013 against the decision and the demand notices. Vodafone Idea argued that the demand effectively altered the financial terms of licences that had already been granted. The company challenged the notices before the Bombay High Court in 2013.
At the time, the high court had granted interim relief to the petitioners and said no coercive action shall be taken against them pending the hearing.
The court, in its judgment on June 9, said it cannot be contended that since spectrum is recognized as a scarce and finite natural resource, the Union of India would be entitled to resile from the terms of contract in a unilateral manner.
Demand revised during Vodafone merger
The dispute expanded in 2018 when the DoT approved the merger of Vodafone India and Vodafone Mobile Services with Idea Cellular.
At that time, the department revised the OTSC demand to Rs 3,322 crore and asked the company to furnish bank guarantees to secure the amount.
Idea Cellular, now Vodafone Idea, submitted the bank guarantees under protest and challenged the requirement before the Telecom Disputes Settlement and Appellate Tribunal (TDSAT).
TDSAT granted interim relief to the company. However, the DoT later secured a stay on that order from the Supreme Court.
About Vodafone Idea
Vodafone Idea (Vi) is one of India’s leading telecom service providers and was formed through the merger of Vodafone India and Idea Cellular in August 2018. The company offers mobile voice and data services across 2G, 4G and 5G networks, along with digital services for consumers and enterprises. Vi serves millions of subscribers across India and operates as an integrated telecom provider under the unified “Vi” brand, which was launched in September 2020. The company is jointly promoted by the UK’s Vodafone Group and India’s Aditya Birla Group.
Vodafone Idea share price
The share price of Vodafone Idea is trading flat in the intraday session today. In the past three months, Vodafone Idea shares has surged 35.88%. On year-to-date (YTD) basis the stock has gained 25.47%.