Auction can’t be sole route to disburse natural resources, govt tells SC

Discussion in 'Economy & Infrastructure' started by ejazr, Jun 26, 2012.

  1. ejazr

    ejazr Stars and Ambassadors Stars and Ambassadors

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    Basically explaining here that the courts (and the CAG by extension) should restrict their focus on only of improper implementation of an established policy. Not make policies themselves and establish wrongdoing that way.

    Auction can’t be sole route, govt tells SC

    New Delhi, June 25 (PTI): The government today told the Supreme Court that “auction cannot be the only permissible method for disposal of natural resources” and a uniform policy on their distribution was “neither practical nor can it subserve the common good”.

    The Centre also said the allocation of natural resources was a policy matter and beyond the purview of judicial review.

    The submissions came in response to questions by the apex court on the Presidential Reference moved by the Centre seeking the court’s opinion on issues arising out of the 2G spectrum allocation judgment, including whether auctioning of natural resources in all sectors was mandatory.

    On the first-come-first-served policy, the government said: “Ultimately, the method of allocation of natural resources, apart from being governed by the principles of fairness and transparency, should also take into account the dynamic concept of public interest, which also includes within its ambit the larger economic perspective and not merely financial gain.”

    According to the government, the desirability to have fairness and transparency in state auction does not lead to the conclusion that “auction is the only way” in which one can proceed further.

    “The disposal and distribution of natural resources has to be made in accordance with the sector-specific requirement of each natural resource. The method of distribution of natural resource has to take into account the nature of natural resource and economic policy underlying the effective utilisation of such resource,” the Centre said.

    Citing apex court judgments that courts do not interfere with a policy decision only on the ground that another decision would be better, the Centre said: “The formulation of policy of allocation cannot be static.”

    Maintaining that there was no single set of determining factors in the context of allocation of natural resources in the world, the government said the policy determining the appropriate method of allocation might be influenced by a variety of factors, such as economic interest of the Union/state, geo-political and industry-specific priorities and sector-specific goals that may require stock-taking at a policy level.

    The Centre added that “the task of finding out the best possible method of distribution of natural resource is a matter which falls within the realm of policy”.

    “It is purely a policy matter as to whether a particular method of distribution is suited to a particular natural resource,” the government said while maintaining that “the principle that the state is bound to adopt the best method of disposal of natural resources is indisputable keeping in mind the constitutional principles of subservience of common good and the doctrine of public trust”.

    “However, the said principles do not bind the state in all circumstances to dispose of natural resources only by way of auction,” the Centre said in its arguments.

    A bench comprising Justices G.S. Singhvi and A.K. Ganguly had delivered a judgment on February 2, cancelling 122 telecom licences by holding the first-come-first-served policy as illegal and unconstitutional and directed that all natural resources should be allocated through “auction”.

    A five-judge Constitution bench headed by Chief Justice S.H. Kapadia will commence hearing from July 10 on the Presidential Reference on which notices were issued to state governments and industrial chambers Ficci and CII.

    The reference has also asked the court whether the verdict in the 2G case will have retrospective effect for radio waves granted since 1994.
     
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  3. Daredevil

    Daredevil On Vacation! Administrator

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    That's fine but don't give away contracts for dirt cheap prices like they did with 2G spectrum and mining quarries. Let there be a scientific method to calculate the right price and then a lottery system could be used to give the contracts.
     
  4. Ray

    Ray The Chairman Defence Professionals Moderator

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    No auction is not the right way to get rid of natural resources.

    If it were so, then how would one feather one's nest or fight the next election to be in a position to add to one's nest's feathers?
     
    Nagraj likes this.
  5. sob

    sob Moderator Moderator

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    Bhushan, Sorabjee want SC to chuck out 2G Prez reference | Firstpost

     
  6. sob

    sob Moderator Moderator

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    Self Delete-- Double post
     

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