Vodafone India has argued that the department of telecommunication's (DoT's) decision to reject its application seeking extension of licences in Delhi, Mumbai and Kolkata circles suffers fundamental flaws.

The UK-based telecom services provider had applied for the extension of its licences in the three circles beyond 2014, but the DoT last week rejected the application, saying the company would have to participate in the upcoming auctions to continue use the spectrum.

In a letter to the department, Vodafone wrote, "DoT's rejection suffers from several fundamental flaws, contradictions, jurisdictional error, and completely misrepresents Vodafone India's position, and renders the said rejection legally unsustainable."

The company argued that the mutually agreeable terms and the telecom policy & licence agreement between them entitled the company to fair & reasonable extension of licence. The company also claimed that the department's move to withdraw 900 Mhz spectrum was against its own policy and licence terms.

While denying Vodafone's request, the DoT had reasoned that the company must participate in the spectrum auctions to be held later in 2013 as airwaves had been de-linked from licence in the new spectrum allocation policy.

Vodafone is not the first telecommunications firm to be denied extension of licence. Earlier, the DoT took a similar stance in the case of Loop and Airtel.