Auction not sole method for natural resource allocation: Supreme Court

Discussion in 'Economy & Infrastructure' started by [email protected], Sep 28, 2012.

  1. Cliff@sea

    [email protected] C'est la vie Senior Member

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    Auctioning resources not necessary, says Supreme Court

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    New Delhi: The Supreme Court today said 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 "Auctions may be the best way of maximizing revenue, but revenue maximization may not always be the best way to subserve public good."

    However, the judges stressed the need for transparency and for fairness in implementing policies, warning that courts will strike down any laws that are unconstitutional or arbitrary.

    The Supreme Court also said that it agrees that spectrum or airwaves for mobile network licenses must be auctioned - a point the government accepted in February, after two judges cancelled 122 telecom licenses that were issued in 2008 by then minister A Raja in a distorted version of a first-come-first-serve policy.

    Supreme Court's opinion blunts BJP, Left attack?
    The national auditor or CAG said in a report last year that the telecom scam is worth 1.76 lakh crores. Another CAG report in August said that 1.86 lakh crores were lost because the government did not auction coal fields. These two swindles, the country's largest, according to auditor, 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. "Where revenue maximization is not the object of a policy of distribution, the question of auction would not arise...revenue considerations may assume secondary consideration to developmental considerations," the court said.

    In February this year, when the Supreme Court cancelled the licenses given by Mr Raja in 2008, it 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 government has seized the opinion offered by the Supreme Court today to counter the damage done to its image and reputation by the CAG reports.

    "Today if you looked at the CAG report, you would also have to take into consideration what these five judges have said," Law Minister Salman Khurshid said.


    Full Text of Supreme Court's ruling : http://supremecourtofindia.nic.in/outtoday/op27092012.pdf

    Auctioning resources not necessary, says Supreme Court, but public good is | NDTV.com

    This is a Follow up of Government's appeal to SC in June where it petitioned that auction can't be the sole route to disburse natural resources

    http://defenceforumindia.com/forum/economy-infrastructure/38189-auction-can-t-sole-route-disburse-natural-resources-govt-tells-sc.html
     
    Last edited: Sep 28, 2012
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  3. Ray

    Ray The Chairman Defence Professionals Moderator

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    The news it one sided.

    It conveniently misses out "when such a policy decision is not backed by a social or welfare purpose and natural resources are alienated for commercial pursuits of profit maximising of private entrepreneurs, adoption of means other than those that are competitive and can maximise revenue maybe arbitrary and face the wrath of Article 14.....

    Failing which the court shall term the executive action as arbitrary, unfair, unreasonable and capricious due to its antinomy with Article 14".
     
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  4. sob

    sob Moderator Moderator

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    Why is it that despite the allocations made by screening committee around 10 blocks have been cancelled.
     
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  5. jackprince

    jackprince Turning into a frog Senior Member

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    Selective blindness of co-opted news media, what else?
     

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