Hyderabad-based Vippalamritha Magnetic Components Ltd (VMC) which had recently emerged as the fourth lowest bidder for BSNL’s rural WiMAX network rollout project is under scanner for alleged evasion of duties for an earlier contract granted by BSNL, reports the Business Line.

Following this, BSNL’s internal vigilance officer has put a stay on giving any new order to the firm. The Business Line report also states that the Directorate of Revenue Intelligence (DRI)  has also issued a show cause notice to Prithvi Information Solution, the parent company of VMC, for the alleged non-payment of duties.

“Since the investigation in this case is going on, it was requested that no order should be placed at this juncture with VMC,” states an internal BSNL note.

The report however adds that the company in question has refuted of any wrongdoing as alleged by BSNL. It reasons that the rules were wrongly interpreted. According to it similar notices issued by the DRI to other firms, were stayed by the courts.