Shares of five telecom companies fell 1.31% to 3.29% at 10:45 IST on BSE on reports that the telecom department is likely to soon send out demand notices to six carriers for a cumulative Rs 12488 crore for under reporting of revenue for 4 years.
Idea Cellular (down 3.29%), Reliance Communications (down 1.96%), Bharti Airtel (down 1.91%), Tata Teleservices (Maharashtra) (down 2.22%) and MTNL (down 1.31%) edged lower.Meanwhile, the S&P BSE Sensex was down 80.91 points, or 0.3% at 27,120.58
As per reports, the Department of Telecommunications (DoT) is likely to soon send out demand notices to six carriers for a cumulative demand of Rs 12488 crore for under reporting of revenues amounting to Rs 46045.75 crore for the period from 2006-07 to 2009-10 after the matter was highlighted by the Comptroller & Auditor General (CAG) in its report in February this year. The figure includes the underpayment of licence fee and spectrum usage charge (SUC) of Rs 5000 crore plus penalty and interest of around Rs 7500 crore, according to reports. The six carriers are Bharti Airtel, Idea Cellular, Reliance Communications and unlisted Vodafone India, Aircel and Tata Teleservices. The telecom companies have reportedly rejected the accusation of under reporting of revenue.
The status on the matter had already been reported in the 2 parliamentary accounts committee (PAC) meetings held so far and that there was another PAC meeting scheduled for 13 July 2016, where the department would bring additional developments to the notice of the committee, reports indicated.
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