The government is looking into complaints over alleged misuse of the Universal Service Obligation Fund by private telecom firms Tata Teleservices and Reliance Communications, Parliament was informed on Wednesday.

Minister of State for Communications and IT Milind Deora said in a written reply to the Lok Sabha that two complaints were received regarding utilisation of the USO Fund.

"Complaints received through CVC regarding disbursement of Rs 1,650 crore to Tata Teleservices and Reliance by USOF for self-certified and mostly fake rural phones," he said, adding that four special squads headed by the Principal Chief Controller of Accounts and Chief Controller of Accounts have been formed to examine the complaints and submit their report.

"The issue is under examination of the government," Deora said in his reply. Under the Universal Service Obligation Fund (USOF) scheme, works related to public access, individual access, shared mobile infrastructure and rural broadband at the village-level have been taken up, in addition to several other pilot projects.

Answering another question, Deora said the Universal Service Obligation Fund (USOF) is also used for the 'Rural Wireline Broadband Scheme' that aims to increase broadband penetration in rural and remote areas of the country.

Under the scheme, BSNL will provide 8,88,832 wireline broadband connections to individual users and government institutions and will set up 28,672 internet kiosks over a period of five years (by 2014). Under this scheme, as of October, 2011, a total of 3,29,169 broadband connections have been provided. BSNL has already covered more than 1.70 lakh villages with broadband services, he added.

In another reply in the Lok Sabha, Deora said that as of October 31, 2011, about 5,79,775 villages (97.67 per cent) of the Census 2001 inhabited revenue villages have been covered with Village Public Telephones (VPTs).