New Delhi:
The government has decided to carry on with the first-come-first-served policy in the mines and minerals sector, sources have told NDTV. The decision comes despite the Supreme Court saying that all national resources must be distributed only through auction. Attorney General GE Vahanvati, whose advice was sought on the matter, is said to have asked the government to go ahead with its current policy.
However, through a presidential reference, the government has asked the Supreme Court whether allocation of natural resources should be done through the auction route only.
The court made the above observations on February 2 when it cancelled 122 licenses granted in 2008 by former Telecom Minister A Raja for mobile network licences and accompanying second generation or 2G spectrum. The licences revoked by the court had been allocated by Mr Raja on a first-come-first-served basis. The judges said that Mr Raja had manipulated the rules to show undue favours to companies that he allegedly conspired with - he is in jail for selling licenses at throwaway prices to ineligible firms. But while Mr Raja may have twisted the first-come-first-serve policy that was the rule at the time, the judges also said that this method of allocating natural resources like spectrum is "fundamentally flawed."
Only an auction, they said, ensures transparency and fair pricing. The government was also told to re-allocate the cancelled mobile licenses within four months via an auction based on market prices. Earlier this week, the court extended this deadline to August 31.
On Aril 12, the government filed a presidential reference in the Supreme Court asking if its judgement in the 2G case makes auctioning of natural resources compulsory. The government has sought clarity as the judgement has ramifications on several other sectors. So it has put together a list of questions that will be delivered to a five-judge bench of the Supreme Court where the matter will be debated. The queries include whether a process of auction has to be followed in the allocation of all natural resources, and if so, whether that amounts to the court interfering with the government's work by setting policy.
Sources have told NDTV that according to Attorney General GE Vahanvati's opinion, the Supreme Court's observations were only to justify the cancellation of 2G telecom licenses.
However, through a presidential reference, the government has asked the Supreme Court whether allocation of natural resources should be done through the auction route only.
The court made the above observations on February 2 when it cancelled 122 licenses granted in 2008 by former Telecom Minister A Raja for mobile network licences and accompanying second generation or 2G spectrum. The licences revoked by the court had been allocated by Mr Raja on a first-come-first-served basis. The judges said that Mr Raja had manipulated the rules to show undue favours to companies that he allegedly conspired with - he is in jail for selling licenses at throwaway prices to ineligible firms. But while Mr Raja may have twisted the first-come-first-serve policy that was the rule at the time, the judges also said that this method of allocating natural resources like spectrum is "fundamentally flawed."
Only an auction, they said, ensures transparency and fair pricing. The government was also told to re-allocate the cancelled mobile licenses within four months via an auction based on market prices. Earlier this week, the court extended this deadline to August 31.
On Aril 12, the government filed a presidential reference in the Supreme Court asking if its judgement in the 2G case makes auctioning of natural resources compulsory. The government has sought clarity as the judgement has ramifications on several other sectors. So it has put together a list of questions that will be delivered to a five-judge bench of the Supreme Court where the matter will be debated. The queries include whether a process of auction has to be followed in the allocation of all natural resources, and if so, whether that amounts to the court interfering with the government's work by setting policy.
Sources have told NDTV that according to Attorney General GE Vahanvati's opinion, the Supreme Court's observations were only to justify the cancellation of 2G telecom licenses.
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