Bhart Airtel, the second-largest telecom operator in India, needs to pay about Rs 8.49 crore in penalties to the Indian government. This penalty stems out of an agreement between the telco and the Digital Bharat Nidhi (DBN) program, earlier known as Universal Service Obligation Fund (USOF). Airtel had agreed to commission mobile sites in Assam and Sikkim as part of the DBN, but several sites have still not be commissioned. The deadline for the telco was June 2019.
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So the Comptroller and Auditor General of India (CAG) has ordered Airtel to pay Rs 8.49 crores to the Department of Telecommunications for liquidated damanges and non-performance penalty.
"DBN needs to expedite commissioning of pending sites and ensure recovery of outstanding LD and NPP from Bharti Airtel Ltd," said CAG. Only 431 sites have been commissioned by Airtel out of the agreed 756.
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CAG report said, "Out of the total penalty, DBN recovered only Rs 10.98 crore, leaving Rs 8.49 crore outstanding even four years after expiry of the roll-out period. The prolonged delays and pending recoveries indicate weak contract enforcement."
