The mobile operator will be looking to renew its licenses for a further 10 years in late 2014, according to The Economic Times, but the DoT has introduced a policy whereby companies cannot claim pre-emptive rights on spectrum.
The DoT has stated that the company must participate in auctions, set for later this year, to access airwaves at market prices.
"Vodafone is deeply disappointed with the summary rejection of its request,” said the company in a statement.
“There appears to be no acknowledgment by DoT of the full and faithful operation of the licence for 18 years.”
A similar request from Bharti Airtel is expected to be rejected on the week beginning March 25, according to officials.
Vodafone India partnered with ICICI bank in November last year to launch mobile money services across the country.