As part of its ongoing probe into the 2G spectrum allocation case, the Enforcement Directorate (ED) on Wednesday issued show-cause notices for assumed foreign exchange violations to telecom firms.

Issued under the Foreign Exchange Management Act (FEMA), the show-cause notices accused telecom firms of foreign exchange violations worth Rs 3,805 crore.

The notices have been issued against New Delhi-based Loop Telecom Ltd. for Rs 549 crore, Mumbai-based Loop Mobile (India) Ltd for Rs 26 crore, DB Realty Ltd Mumbai for Rs 2,831 crore and Chennai-based ETA star property developers Private Ltd for Rs 399.50 crore of foreign exchange violations.

The notices have cited numerous charges of violation of Reserve Bank of India (RBI) guidelines regarding receipt of Foreign Direct Investment (FDI) and routing of money to & from overseas companies.

The ED has been probing the role of various telecom firms in financial transactions in the 2G spectrum allocation case. The source, who reported the development, said that the ED issued the notices after scrutinizing all the "evidence on record" as well as information furnished by these firms.

The firms can challenge the show-cause notices in the FEMA's appellate authority that acts as a quasi-judicial court.