2G scam...SC clarifies on Govt's presidential reference

The Supreme Court (SC) on Thursday said that public auction is not the only permissible option for allocation of natural resources and that its Feb. 2 verdict is limited to the allocation of mobile-phone permits. The Government should try to distribute all scarce natural resources with an aim to bring in more revenue, a five-judge panel headed by Chief Justice S.H. Kapadia said. "Profit maximisation cannot be only basis for allocating natural resources. The clarification from the apex court, however, has no bearing on the 2G order," the Bench said in its statement today. The Government had on April 12 moved the Presidential Reference signed by the then President Pratibha Patil in which eight questions were raised, including whether there could be judicial interference in policy matters, vis-a-vis disposal of natural resources and investments made by foreign investors under multi and bilateral agreements. The reference had sought the apex court's opinion on whether the judgement is required to be given retrospective effect so as to unsettle the licences issued for 2G spectrum and allocated after 1994 till 2008. In February this year, the apex court had canceled 122 telecom licences granted in early 2008, saying that money power and the ability to manipulate the system helped bidders win new telecom licenses when A. Raja was the Telecom Minister. The Government made a presidential reference to the Supreme Court, seeking clarity on the universal applicability of the verdict. The Supreme Court clarified that its opinion doesn't have a bearing on its 2G order, which was only restricted to telecom spectrum. The five-judge bench said "which policy is best is the wisdom of the executive, since the judiciary doesn't have the expertise to decide which method is suitable for disposal of a particular natural resource." "Merely because there is scope for potential abuse of the process, the policy of auction can't be declared as the only route for disposal of natural resources," the judges added. The Supreme Court's opinion today is not binding on the Government, or on other courts.