Indian regulator DoT is considering fining Bharti Airtel up to 500 million rupees ($10.7m) for alleged violation of its license terms.
The operator is accused of issuing bulk mobile connections to Falcon Business Resource and Galaxy Rent, agreements which allowed them to rent SIMs to individual customers, Business Standardsaid.
Third-party transfer of SIMs or connections is not allowed under Bharti's license agreement with the DoT, according to the the regulator.
Allocating mobile connections to an individual without clearing them could have security implications, telecom and IT minister Sachin Pilot told Indian parliament.
But Bharti Airtel has denied it has received any formal communications from DoT over the matter.
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