Telecom Stocks Fall As DOT To Send Demand Notices For Rs 12,500 Crores

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Shares in telecom companies fell after reports that the Department of Telecom (DOT), would soon issue a demand notice of over Rs 12,500 crores.

Shares in Reliance Communications was down 2 per cent, while Idea Cellular dropped 3 per cent and Bharti Airtel was also down 2 per cent in trade.

Telecom Stocks Fall As DOT To Send Demand Notices For Rs 12,500 Crores
According to PTI reports the The Department of Telecom will soon issue demand notice of over Rs 12,500 crore to six telecom operators who were found by CAG to have under-reported revenues to the tune of Rs 46,000 crore between 2006 and 2010.

"The DoT is in the process to issue demand notice of over Rs 12,500 crore to six telecom operators -- RCom, Tata Tele, Vodafone , Airtel , Idea and Aircel -- which the CAG has found to have under-reported revenues during the UPA regime," a Telecom Ministry official was quoted by PTI as saying.

If the fresh demands materialize, it could be a big blow to the telecom operators, who have had similar issues in the past.

Telecom companies are already grappling with issue of large debts and severe competition. However, as we have seen in the past, the telecom operators may contest the move.

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Read more about: telecom, vodafone, airtel
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