DoT issues show cause notices over understated earnings

8 Feb 2012

India’s Department of Telecommunications (DoT) has issued show cause notices to Bharti Airtel, Idea Cellular, Vodafone, Reliance Communciation and Tata Teleservices for allegedly understating revenues from 2006 to 2008, and paying lower levies as a result. The court is expected to demand a total of INR16 billion (USD323 million) from the telcos. Representatives of the operators, however, claim that the DoT has misinterpreted accounting standards and practices. A spokesperson for Vodafone said that the telco was confident that it was not liable for additional fees as the company adhered to ‘the highest standards of accounting discipline and compliance norms.’