DoT to slap Rs1,594 crore penalties on five mobile firms

Indian telecom licensor, department of telecommunications (DoT), plans to slap penalties totaling Rs1,594 crore on five mobile phone firms for underreporting revenues, resulting in losses to the exchequer.

''The DoT has dismissed the companies' responses to the showcause notices, and decision has been taken to penalise these firms. The notices would be issued in a couple of days,'' a DoT official said.

The notices would be sent to Bharti Airtel, Idea Cellular, Vodafone India, Tata Teleservices, Tata Communications and Reliance Communications.

According to DoT estimates, Bharti Airtel would have to pay penalties of Rs292 crore and Vodafone India about Rs254 crore. The penalties for Idea Cellular would be about Rs113 crore, Tata Teleservices in the tune of Rs 273 crore, Tata Communications Rs120 crore and Reliance Communications about Rs551 crore.

This includes interest and other related fines for the alleged violations.

Earlier this year, a DoT-appointed panel endorsed the findings of external auditors, which said these operators had understated revenues by Rs10,268 crore for assessment years starting from 2006 to 2008. The companies were issued showcause notices later.