Indian and foreign phone companies could be forced to pay more than $1bn each to the New Delhi government after a critical audit of a controversial allocation of mobile licences, two senior government officials said.
The comments by the officials to the Financial Times underline the extent of the likely commercial fallout from growing anger over the alleged undervaluation of second-generation mobile licences awarded in 2008. The scandal has already forced the resignation of Andimuthu Raja as telecoms minister.
The report by India’s national auditor concluded that the country’s telecoms ministry was allotting spectrum to existing operators, Bharti Airtel, BSNL and Vodafone, beyond the contracted limit without imposing any upfront charges.
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