Wednesday, October 24, 2012

SC JUDGEMENT ON PRESIDENTIAL REFERENCE

  • In a major relief to the Centre, a five-judge Bench of the Supreme Court headed by outgoing Chief Justices SH Kapadia virtually gave it a free hand in the allocation of natural resources, clarifying that the judgment mandating auction was restricted to the 122 telecom licences the SC had cancelled in February this year.
  • Through the reference, the government had sought a clarification as to whether auction was the only route available under the February 2, 2012 SC verdict for allocation of all natural resources.

 HIGHLIGHTS OF ADVISORY OPINION:

  • The Supreme Court judgement has clarified that auction is not the only permissible method of allocating natural resources across all sectors. It will depend from sector to sector. 
  • It is for the executive to make the policy regarding disposal of natural resources but this should always be done keeping in mind the public good.
  • Further it explained, “Revenue maximization is not the only way in which the common good can be sub-served. Auction would be one of the preferable methods, though not the only method”.
  • There is no Constitutional mandate for auction of all forms of natural resources 

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