Cheap Chinese mobile phones pose threat to India

"However, most of the China-make mobile phones carry fake IMEI numbers. In some case, several of such handsets have the same IMEI number. In such cases, it becomes virtually impossible to extract information about the calls made from these mobile phones," the official said.

Another problem, the official said, is that these cheap Chinese imitations are generally sold in gray markets without bills or proper verification made of the buyer and investigators find it a difficult task in identifying the buyers.

In Delhi, these 'Made in China' mobile phones are sold in Palika Bazaar in Connaught Place and Gaffar Market in Karol Bagh.

The official said that these cheap handsets are becoming a security risk and IB has recommended to the Home Ministry and Department of Telecommunications (DOT) to ban the sales of such handsets immediately.

According to the Indian Cellular Association (ICA), these Chinese handsets also lead to over $1 billion of losses every year, borne by mobile manufacturers, distributors and retailers.

"Duplicate handsets are not only being sold in small towns but also in big cities. The prices of these mobile phones are less than the genuine ones and so customers are tempted to buy these, resulting in losses to the branded manufacturers," Pankaj Mahindroo, president, ICA, said.