CBI probing SingTel for allegedly violating laws

New Delhi: SingTel is under the CBI scanner following a Department of Telecom complaint for alleged violation of Indian laws by offering international long distance (ILD) services without a licence.

"With regard to action against the non-licensed entity Singapore Telecommunications Ltd (SingTel) for violation of the Telegraph Act, 1885, DoT has registered a complaint in this regard with Economic Offence Wing of CBI on November 29, 2010 and the matter is presently under investigation by CBI," Telecom Minister Kapil Sibal said on 9 November, in reply to a letter from a Member of Parliament.[caption id="attachment_130842" align="alignleft" width="380" caption="SingTel in the eye of law. Vivek Prakash/Reuters"][/caption]

SingTel was billing the local customers in India without having the telecom license in the country flouting the telecom norms and conditions. The issue was brought before the government by a Lok Sabha MP.

The government has already fined Rs 50 crore each Bharti Airtel and Tata Communications which had an arrangement with Singapore Telecommunication (SingTel).

The DoT complained that the SingTel offering ILD services and it was "acquiring customers in India...", without having license thus violating the Indian Telegraph Act, 1885.

The period covered services provided between 2005 and 2009, sources said.

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The penalty on Bharti Airtel and Tata Telecom was based on recommendations of an internal DoT committee.

As per the licensing norms, Indian ILD operators are authorised to provide Indian circuits to a foreign carrier (like SingTel in this case) so that they are able to provide end-to-end services to their customers in their territories.

The committee found, from submissions made Bharti, that the company had raised the invoice to SingTel at its Singapore address for the portion of circuit provided by Bharti Airtel.

PTI