India Micromax owners are arrested for alleged bribery

Micromax ad outside a shop selling mobile phones in Delhi Micromax is gaining a market share in the Indian mobile phone market

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Police in India have arrested the two owners of mobile phone maker Micromax Informatics for allegedly paying a bribe to civic officials.

Rajesh Agrawal and Manish Tuli were caught paying 3m rupees ($49,000; £31,652) to civic workers, police said.

Two officials of the Delhi municipal corporation were also arrested.

Although Mr Agrawal and Mr Tuli have not yet commented, Micromax said it had "nothing to do with alleged personal misconduct of arrested individuals".

Officials of the Central Bureau of Investigation (CBI) were quoted by the Press Trust of India news agency as saying that they got "a tip-off" that the Micromax owners had "entered a deal with the engineers of the civic body to get clearance for construction of a banquet hall in the Wazirpur area".

CBI officials alleged that they caught the two men "red-handed" as they were handing over the money to the civic officials, PTI added.

Micromax, a domestic handset manufacturer, was the second biggest smartphone vendor in India in the first quarter of this year.

The company has made a dent in the Indian smartphones market by offering Android-based phones at below $75 while the lowest-priced Apple and Samsung smartphones sell for $490 (£316) and $113 (£73) respectively.

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