According to documents of the Internal Security Division of the Home Ministry, Vodafone is alleged to have given the UK-based Government Communication Headquarters (GCHQ) "secret unlimited access to their network of under sea cables, which carry much of world's phone calls and Internet traffic".
"GCHQ's mass tapping operations has been built up over the past five years by attaching intercept probes to the transatlantic cables where they land on British shores," the home ministry documents claimed.
Though the note had asked the Department of Economic Affairs not to proceed with realignment of Vodafone, which is involved in a Rs 11,200-crore tax dispute over purchase of Hutch's stake in 2007, the Foreign Investment Promotion Board (FIPB) went ahead and gave clearance for increasing the foreign equity in Vodafone India Limited.
The Union Home Ministry had alleged that Vodafone and a US-based company Verizon "are learnt to be secretly collaborating with UK's GCHQ and passing on details of their customer phone calls, email messages and other communication and are intercept partners".
The telecom operator also denied that it was disclosing "any customer data in any jurisdiction unless - like any other operator - it is legally required to do so".