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This Article is From Sep 28, 2012

Highlights: Govt on Supreme Court's 2G opinion

New Delhi:
  • The court has categorically held that the predominant consideration is common good and nor revenue maximisation.
  • There are other objectives are equally compelling and equally deserving of being pursued by the government.
  • What will determine right or wrong is "common good." The court has recognised this in the past.
  • There have been cases have not followed an auction and court has upheld the government's decision
  • Where revenue maximisation is the goal, auction is an attractive and preferred means - the words are pregnant with meaning.
  • Where economic policies are made court cannot and should not sit in judgment on those choices.
  • In every way we believe that the position of the government that has been articulated over the past 2 years, the court has observed and laid down principles completely in consonance.

Kapil Sibal:

  • The assumption that scarce natural resource that should always be disposed through auction has been rejected - so there is no mandate to auction  for scarce natural resources.
  • To derive auction as a constitutional principle only for a limited set of situations would be odd.
  • Many of the policies followed by the government and the previous governments is based on the principle that revenue maximisation is not the objective - court has said in that case auction is not the only way. It also observed, allocation to the highest bidder may sometimes run counter to public good.
  • Court has said potential for abuse cannot be the basis for striking it down. Even auction has the potential of abuse.
  • Methodology pertaining to the disposal of natural resources is clearly an economic policy - and that cannot be struck down, nor does the constitution mandate to distribute natural resources through auction alone.
  • Supreme Court makes a distinction between policy and means - implementation can be struck down... distinction between policy and executive action.

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