The Department of Telecom has sought the opinion of the Attorney General Mr Goolam Vahanvati's opinion on the issue of cancelling six licences to Unitech Wireless' subsidiary Adonis Projects.

The DoT has asked the Attorney General a number of questions including whether the effective date of change in a company's Memorandum of Association was from when the company's board cleared it or when the Registrar of Companies issued a certificate.

The DoT had earlier sought opinion from the Ministry of Corporate Affairs and the Ministry of Law. The MCA has taken a view that the effective date in alteration in the object clause is the date of registration of the board resolution by ROC office.

The Comptroller and Auditor General in its report on 2G scam had alleged that the company was not eligible at the time of applying for licence because its MoA did not include telecom-related activity. Since the company cannot act beyond the scope of its Memorandum, The DoT had refused licences to some companies which had failed to meet this requirement including Parsvnath Developers. At the same time, the DoT had issued six licences to Adonis Projects, which later got merged into Unitech Wireless.

The DoT has also asked Mr Vahanvati to give a view on the effective date of paid-up equity capital. MCA's view is that paid-up capital stands increased immediately on allotment of shares by passing resolution to this effect.

The Ministry of Law in its opinion said that since the matter was sub-judice before the Supreme Court, the DoT should take the view of the Attorney General. Quoting Mr Vahanvati's arguments in the apex court during the hearing on November 28, 2010, the Law Ministry said the correct position is that the company cannot merely pass a resolution increasing its authorised capital and contend that it has come into force. The Supreme Court has finished hearing the case and is expected to pronounce its ruling soon.

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