The ministry of labour and employment has denied widespread media reports that it had given notice to Chinese telecom equipment maker Huawei for alleged violations of labour and employment laws.

In a statement issued today, the ministry said, "...no such notice has been issued by the Ministry of Labour and Employment."

Media reports had saaid that Huawei Telecommunications's Indian subsidiary, Huawei Telecommunications India had received a notice from the labour ministry for employing Chinese workers without valid work permits and avoiding paying income tax.

Acordng to these reports, the ministry's notice stated Chinese workers were employed in India in large numbers without proper work permits, much beyond the permissible limits and that these employees had not been paying applicable income tax in complete disregard to the law

The notice is also reported to have accused the company that most of its Chinese workers had been staying in India on business visas and illegally residing without resident permits, in contravention of visa rules. It allegedly warned the company that surprise could be conducted by the authorities at its various business premises for inspection to enforce compliance after two weeks.

The reports also said that the company had acknowledged receiving the notice

Huawei Telecommunications investment proposals in the country have been held up due to security considerations.

The companty has shown keenness to bid for the BSNL tender for 90 million GSM lines.