RCom, Bharti face fine for violating user verification norms

The Telecom Ministry may issue demand notices of Rs 55.67 lakh to Reliance Communications (RCom) and Bharti Airtel for violating the licence agreement by registering new subscribers without proper verification in the Delhi service area.

"The proper verification has not been carried out by the service providers at the time of providing service to these subscribers. Hence, Bharti Airtel has violated the terms and conditions. Therefore on the ground stated, prescribed graded financial penalty of Rs 2.79 lakh," according to in internal communication of the Department of Telecommunications (DoT).

Similarly, RCom too has violated the licensing terms and norms and has to pay the penalty of Rs 52.88 lakh to the DoT.

The matter is related to the demand notice of penalty in respect of sample customer application forms (CAFs) audit conducted based on the subscriber base at the end of February, 2011, for the Delhi Metro service area, the note said.

Bharti Airtel has failed to comply with the essential requirement of subscriber verification like photo on CAF, ID proof and address proof in 198 cases and in 81 cases the CAF has not made available to the DoT. The total number of violation are in 279 cases.

In case of RCom, DoT had already issued the demand notice to the company but the company did not till date had paid the amount. So, the company has to now pay an amount of Rs 49.65 lakh along with an interest of Rs 3.2 lakh, amounting to Rs 52.88 lakh.

Both the demand notices are "without the prejudice to any other action that may be taken by the Licensor," the note added.