Govt duty-bound to auction telecom spectrum, Centre tells SC

 The Centre on Thursday told the Supreme Court that it was bound by its ruling on allocation of 2G spectrum through auction but felt a similar route for other natural resources would hamper FDI and other investments in the country.

It said the Presidential reference was only pertaining to adoption of the process for allocation of other natural resources

"There is no question of overturning the result in the judgement of the 2G case," Attorney General G E Vahanvati submitted before a five-judge Constitution Bench headed by Chief Justice S H Kapadia.

"There is no doubt about the spectrum now. As far as spectrum is concerned, the government is duty-bound by the court's order for auction. It (reference) is only with regard to other natural resources," he told the bench, also comprising justices D K Jain, JS Khehar, Dipak Mishra and Ranjan Gogai.

He said the reference is required as there is a doubt about the method to be adopted for the allocation of natural resources in view of 2G verdict and it could impact Foreign Direct Investment (FDI) in the country.

The Attorney General termed as incorrect the contention that the present reference seeks to overturn or overrule the judgment dated February 2.

The AG rejected the allegation that the Presidential reference is malafide and deserved to be returned.

It has been repeatedly made clear that the directions given in the judgment have been accepted. Doubts that have arisen are with regard to certain observations made in the judgement as a statement of law which require to be clarified, he said.

"Thus, the far-reaching nature of this judgment may impact FDI and other investments in this country. This is the dilemma which the government faces. This is the question of far-reaching importance," he said.

All this demonstrates generally speaking the reluctance of foreign investors to look into India as a safe place for investments. "It is this question which is highlighted in the reference," he said.