New Delhi, India – January 28, 2025: Bharti Airtel Limited (NSE: BHARTIARTL, BSE: 532454) has received a penalty notice from the Department of Telecommunications (DoT), Maharashtra LSA, imposing a ₹1,25,000 fine for an alleged violation of subscriber verification norms. The notice, received on January 28, 2025, at 15:34 IST, cites non-compliance under the License Agreement's verification terms following a Customer Application Form (CAF) audit conducted for November 2024.
Key Details of the DoT Notice
| Parameter | Details |
|---|---|
| Regulatory Authority | Department of Telecommunications (DoT), Maharashtra LSA |
| Nature of Action | Penalty for non-compliance with subscriber verification norms |
| Penalty Amount | ₹1,25,000 |
| Date of Notice Receipt | January 28, 2025, 15:34 IST |
| Basis of Alleged Violation | Failure to comply with subscriber verification terms under the License Agreement |
| Financial Impact | Limited to the penalty amount |
Regulatory & Compliance Background
- The Department of Telecommunications (DoT) regularly audits telecom operators to ensure compliance with subscriber verification norms.
- Failure to meet verification guidelines can lead to financial penalties, legal scrutiny, or potential service disruptions.
- In this instance, DoT's Sample CAF Audit for November 2024 flagged Bharti Airtel for an alleged discrepancy.
Bharti Airtel's Response & Financial Impact
- The company acknowledged the notice and stated that the financial impact is limited to the penalty amount.
- Due to the relatively small fine, no material impact on Airtel's financials or operations is expected.
- Airtel is likely to review its compliance procedures and engage with DoT to address any concerns.
Management Commentary
Rohit Krishan Puri, Joint Company Secretary & Compliance Officer, Bharti Airtel, stated:"We have received a penalty notice from DoT related to subscriber verification norms. While we take compliance seriously, we will assess the matter and take appropriate actions to resolve any concerns.".
Market & Investor Takeaways
- Minimal financial impact on Bharti Airtel, given the low penalty amount.
- Potential reputational and regulatory concerns will depend on Airtel's response and future compliance measures.
- Regulatory vigilance remains high in the telecom sector, with increased scrutiny on subscriber verification.