New Delhi: The Supreme Court today clarified that it does not
believe that all national resources must be auctioned -the opinion,
delivered by five judges, provides relief for the government, partly
because it accepts that the government has the right to decide policy,
and also because it emphasised that "maximisation of revenue...can't be
the sole criteria in all situations and circumstances." The judges said
"which policy is best is the wisdom of the executive, since the
judiciary doesn't have the expertise to decide which method is suitable
for disposal of a particular natural resource."
The Supreme Court has, however, said that it agrees that spectrum or airwaves for mobile network licences must be auctioned - a point the government has already accepted.
The country's two largest swindles, according to the national auditor or CAG, were enabled because the government did not auction spectrum and coal fields. The government has been arguing that a competitive bidding process would have led to increased costs which would have adversely impacted consumers and the industry.
The Supreme Court has, however, said that it agrees that spectrum or airwaves for mobile network licences must be auctioned - a point the government has already accepted.
The country's two largest swindles, according to the national auditor or CAG, were enabled because the government did not auction spectrum and coal fields. The government has been arguing that a competitive bidding process would have led to increased costs which would have adversely impacted consumers and the industry.
The Supreme Court appears today to have accepted that point of view.
"Merely because there is scope for potential abuse of the process, the
policy of auction can't be declared as the only route for disposal of
natural resources," the judges opined.
In February this year, the court cancelled 122 telecom licenses issued by former minister A Raja in 2008 on the basis of a first-come-first-serve policy which he allegedly manipulated. In its landmark judgement, the court said that a get-in-line policy was fundamentally flawed because it favours those "with access to the corridors of power" and that all natural resources must be auctioned by the government.
The government then asked for a Presidential reference -it sought a clarification from the Supreme Court on whether its stand on an auction, as expressed in the telecom or 2G verdict, applies to other national resources.
The Supreme Court's opinion today is not binding on the government, or on other courts, but will have a persuasive effect on their judgements.
In February this year, the court cancelled 122 telecom licenses issued by former minister A Raja in 2008 on the basis of a first-come-first-serve policy which he allegedly manipulated. In its landmark judgement, the court said that a get-in-line policy was fundamentally flawed because it favours those "with access to the corridors of power" and that all natural resources must be auctioned by the government.
The government then asked for a Presidential reference -it sought a clarification from the Supreme Court on whether its stand on an auction, as expressed in the telecom or 2G verdict, applies to other national resources.
The Supreme Court's opinion today is not binding on the government, or on other courts, but will have a persuasive effect on their judgements.
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