According to Comptroller and Auditor General of India (CAG) report pronounced in 2008, out of the 122 license issued, 85 license were issued without fulfilling the basic eligibility criteria.
Based on the CAG report many Telecom companies were under the scanner. These include Uninor, Loop Telcom, Aliance Infratech which later merged with Etisalat telecom, Videocon telecom and Estel.
In a press conference Sibal said, "we have decided to send notice to 85 companies and they will be given 60 days time to answer."
"The action will be taken based on merit and see if the Memorandum of Association and equity conditions has been fulfilled or not," Sibal added.