The Central Bureau of Investigation (CBI) is reportedly looking to present its arguments in a Delhi court on September 26, 2011, in response to the Ministry of Law and Justice?s report, which states that a firm should have more than 10 per cent stake in another for being termed an associate.

Prior to this, the court had asked the CBI to place on record the Ministry?s report on the issue of associate companies.

Law Secretary D.R. Meena, in his report presented to the Department of Telecommunications (DoT), had said that the term associate could be determined only by applying the share-holding test between telecom firms.

Meena had said that it was a common error to confuse a mere association with the definition of an associate company. The report stated, ?Companies may have common interests, common business strategies, financial dealings, business pacts and understandings. It is common knowledge that in the telecom sector, several companies enter into business arrangements for technical support and strategies like sharing of towers. To that extent, they certainly have an association, but by no means can they be termed as associates of one another on that ground. The true test, therefore, is to apply the shareholding test.?