Vodafone Idea can raise funds through an equity sale or by bringing in capital from promoters, which can be used to pay off debts and establish a non-profit business. In a letter to the telecom minister, Telecom Watchdog demanded that the debt-ridden company's plea for more time to pay dues of Rs 8,292 crore be denied.

Vodafone Idea (Vi) has contacted the government for a one-year delay on the payment of a Rs 8,200 crore spectrum instalment due in April 2022.

In a letter to the telecom secretary dated June 25, 2021, Vi stated that it would be unable to pay the Rs 8,292 crore instalment due on April 9, 2022, due to cash being used to pay AGR (Adjusted Gross Revenue) dues and the operations' inability to generate the required cash in a predatory pricing s
While Vi has been striving to raise additional finance for the past six months, investors have been hesitant to invest because they feel that unless consumer tariffs increase significantly, the industry's health will not rebound, and they would lose money on their investment.

In a letter dated July 3, Telecom Watchdog claimed that Vi's allegation that investment is not coming to India because of lower pricing is without merit, and that these "false statements by VIL are made with an ulterior goal to evade payment of the next instalment of government dues."
When contacted, a Vi representative stated, "The telecom industry is under a lot of pressure, according to industry insiders. Over the last two years, COAI, the industry association that represents all three private operators, has emphasised the need for support for the sector and has unanimously requested that Floor pricing be established in order to restore the sector's health. We would not respond to speculative criticism or conclusions based on incomplete information."

Vi founders, Kumar Manglam Birla, and Vodafone Group Plc are financially powerful, according to the non-profit, and their reluctance to pay government dues is improper.
Birla has a personal net worth of Rs 99,000 crores, up over 50% from previous year, and Vodafone Group Plc's market valuation was Rs 3,40,000 crores as of July 2, 2021, according to the corporation.

"Both could have put money into the company to ensure that the government's dues were paid on time. Apart from increasing the company's operational performance, both have a reputable image around the world and should have no issue acquiring financing "According to the letter.

Vi's promoters have said publicly that they will not invest any additional funds in the company.
The incapacity of Vi to generate funds, according to Telecom Watchdog, demonstrates its mishandling of affairs in terms of operations and financial management. "It (Vi) has woefully failed to raise cash through equity dilution and improve its networks with cutting-edge technology to minimise costs, among other things," according to the letter.

The request of Vodafone Idea should not be accepted, according to the corporation, because there can't be any "factually erroneous misleading assertions" on the financial health of the Indian telecom sector other than those made by VIL.
Both Jio and Bharti Airtel have raised funds by diluting their equity, demonstrating that the Indian telecom sector is a bright star, and Vodafone Idea's request should be rejected because "there is no basis in VIL representation that investment is not coming to India due to lower tariffs," according to the report.

According to Telecom Watchdog, the government cannot continue to offer advantages solely to assist and maintain a single company afloat that is unable to manage its own affairs.

"It is proposed that this is a suitable case for a forensic audit of finances for at least the last ten years to assess misrepresentation of facts to lenders or diversion of funds to delay or evade payment of government dues," the letter reads.
Vi has reported a reduction in its consolidated loss to Rs 7,022.8 crore for the quarter ended March 2021, primarily to cost-cutting measures. In the same time a year before, the company incurred a loss of Rs 11,643.5 crore.

Total income fell by nearly 19% to Rs 9,647.8 crore in the first quarter of 2019-20, compared to Rs 11,920.4 crore in the previous quarter. Vi's loss shrank to Rs 44,233.1 crore in the fiscal year ended March 31, 2021, from Rs 73,878.1 crore in the previous fiscal year.

As of March 31, 2021, VI's gross debt (excluding lease liabilities) was Rs 1,80,310 crore, consisting of Rs 96,270 crore in deferred spectrum payment obligations, Rs 60,960 crore in AGR (adjusted gross revenue) liability owed to the government, and Rs 23,080 crore in debt from banks and financial institutions.