29 September 2012

Central Government accepts the 2-G spectrum judgment as binding.

The Congress misleads the nation on the reference judgment regarding the mode of auctions for alienation of natural resources. The tone of the congress party in the press conferences held after the reference is answered by the honourable Supreme Court is totally in conflict with the spirit of the response of the honourable Supreme Court to the Presidential reference, which was evidently an attempt to overrule the 2-G spectrum judgment. The interpretation of the reference judgment regarding allocation of natural resources is apparently misleading. In fact, the said reference has confirmed the 2-G spectrum judgment dated 2nd February, 2012 in the matter of the Centre for Public Interest Litigation & Ors. Vs. Union of India & Ors, and even the Union of India has accepted the same as binding. The reference, though has declared that, the mode of auction is not the only way for allocating the natural resources, it has re-iterated that any decision of allocation of natural resources is always subject to judicial review. SPECIAL REFERENCE NO.1 OF 2012 [Under Article 143(1) of the Constitution of India] concludes by declaring that, 149. Regard being had to the aforesaid precepts, we have opined that auction as a mode cannot be conferred the status of a constitutional principle. Alienation of natural resources is a policy decision, and the means adopted for the same are thus, executive prerogatives. However, when such a policy decision is not backed by a social or welfare purpose, and precious and scarce natural resources are alienated for commercial pursuits of profit maximizing private entrepreneurs, adoption of means other than those that are competitive and maximize revenue may be arbitrary and face the wrath of Article 14 of the Constitution. Hence, rather than prescribing or proscribing a method, we believe, a judicial scrutiny of methods of disposal of natural resources should depend on the facts and circumstances of each case, in consonance with the principles which we have culled out above. Failing which, the Court, in exercise of power of judicial review, shall term the executive action as arbitrary, unfair, unreasonable and capricious due to its antimony with Article 14 of the Constitution. VAKILSAHEB

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