CVC orders probe against DoT officials

The govt allegedly lost Rs 100 cr on account of Bharti Airtel raising its NLD carriage charges.

The Central Vigilance Commission (CVC) has ordered an investigation into the possible involvement of Department of Telecommunications (DoT) officials in the alleged loss of Rs 100 crore to the exchequer on account of Bharti Airtel raising its national long distance carriage rates.

The probe has been ordered following a complaint by Member of Parliament Ajay Chakraborty. In a letter, the MP said Bharti Airtel raised its national long distance carriage rates from 25 paise per minute to 55 paise per minute in 2008, to allocate more revenue on its books to the national long distance (NLD) services and lower the revenue from its mobile services.

“As a result of this malafide practice of Bharti, the government is losing share of over Rs 8.3 crore per month and Rs 100 crore per annum, besides causing grievance to consumers who are finding STD to be unaffordable,” the letter said, asking the CVC to conduct an inquiry into the possible connivance.

Last year, the Telecom Regulatory Authority of India (Trai) had noted a significant shift in Bharti’s revenues from the long distance segment. Under the existing policy, the long distance segment attracts only 6 per cent licence fee, as against up to 10 per cent of aggregate gross revenue (AGR) in the case of mobile services. Through this practice, telcos have been paying much less than what they had to, leading to a loss of revenue to the government.

While the DoT has already ordered a special audit of Bharti Airtel on this issue, the CVC will look into charges of irregularities against DoT officials.

The CVC has asked for a report on the issue by June 2009. Commenting on the investigation, a senior CVC official said, “We have asked for an investigation on the issue since a complaint has been received. But we have not named or launched investigations against any individual official. When the report of the investigation is filed, we will take further action.” Bharti Airtel declined to comment on the issue.