Sources said that the minister has decided to take stern action against large number of ex-government servants who have joined domestic and multinational companies in violation of service rules.

Government service rules prevent officials, who have occupied key posts during their tenure, from taking up assignments in the private sector for a minimum of two years after retirement. Any violation of the rules leaves erring officials open to actions, including blocking of pensions and withdrawal of other post-service benefits.

Several officials, including some who have held top positions in the department of telecommunication (DoT) and certain public-sector units like Videsh Sanchar Nigam and Mahanagar Telephone Nigam among others, have been issued show cause notices.

DoT sources said that these officials have been directed toimmediately submit complete details related to their present employment, including details of the "nature" of work being carried out by them.

Sources described the move as an attempt to checkmate the activities of officials who are exercising their influence in matters related to awarding of contracts. They said that, "former officials have a virtual stranglehold on the department and leverage their clout for either smoothening the way for their present employers or for sabotaging rivals' plans."

"This has given the department a very bad name, especially in an environment where the DoT is trying to promote private sector and foreign investment for catering to the country's telecom needs," said a former official, who has held key assignments in the Telecom Commission.

In another related move to clean up the DoT's functioning, Jagmohan has asked the comptroller and auditor general (CAG) to undertake a special audit of his department. The audit will focus on a host of issues including sensitive mattersrelated to the award of tenders, procurement of goods and the long delays associated with the tender process.

Sources said the audit, which will dwell on reasons for long delays in tender petitions, will lead to better and vigorous enforcement of post-tender terms and conditions.

The directive follows Jagmohan's decision to undertake a complete overhaul of the procurement process in the department. The DoT is among the top three government agencies who outsource a massive amount of material, including key teleom equipment in the case of DoT.

Earlier, the minister had decentralised powers to area general managers for purchase of telecom equipment including internet equipment, cables and other materials. This was in bid to speed up decision making and introduce transparency in the department's functioning.