New Delhi, Nov. 28 -- India's telecom service providers have opposed the regulator's proposal to impose turnover-linked penalties of up to 1% for filing incorrect or incomplete financial reports.

The government relies on these filings to verify operator revenues, compute statutory levies such as licence fees and spectrum usage charges, and intervene to ensure fair competition and protect consumer interest.

In submissions reviewed by Mint, the operators said the Telecom Regulatory Authority of India's (Trai) proposed framework, which seeks to link monetary penalties to turnover, is disproportionate and would unfairly penalise inadvertent or minor errors.

"The proposed financial disincentive of up to 1% of turnover appears very stringent...