New Delhi, March 24 -- The Telecom Regulatory Authority of India (Trai) has dropped a proposal to impose penalties of up to 1% of turnover on service providers that file incorrect financial reports after objections by operators.

Instead, Trai has opted for a capped, slab-based penalty framework in its final regulations, under which penalties of as much as Rs.5 crore can be imposed, depending on whether the violation is major or minor and the company's turnover.

For operators with an annual turnover of over Rs.5,000 crore, the penalty for filing incorrect reports and hiding material facts is capped at Rs.1 crore for minor violations and up to Rs.5 crore for major violations. For service providers with an annual turnover of up to Rs.500 c...