Telcos face USD280m fines for under-reporting revenues

29 Jun 2012

Indian telcos Reliance Communications (RCOM), Bharti Airtel, Vodafone India and Tata Teleservices (TTSL) are expected to face penalties for under-reporting revenues, reports India Today. The Department of Telecommunications (DoT) will next week issue notices for the telcos to pay a combined total of INR15.94 billion (USD279.5 million) in fines, following an investigation into the companies’ earnings between 2006 and 2008. Earlier this year, the government had ordered an external audit of the telcos’ books to ensure that they had shared the correct revenue with the exchequer. The audit found that the telcos had excluded revenue that was not considered to have been generated through telecom business: the DoT holds that the licence terms cover all revenues, not just those generated by telecom services. An unnamed DoT official added that the regulator had consulted the law ministry on the matter ‘so there is no escape from it. They will have to pay the penalty come what may.’