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The Department of Telecom (DOT) has directed Vodafone, the second largest mobile company in India, to pay a penalty of rs. 1,263 crores for underreporting revenues for the four financial years from 2007-2008 to 2010-11. The penalty is imposed, since the company manipulated its accounts to show reduced revenue to escape from paying the licence fee and spectrum usage charges on adjusted gross revenue.

This incident once again exposes the methods used by the private companies to cheat the government and escape from paying the taxes and other charges.