MB Shah panel to give first interim report by Sept 30

Justice MB Shah enquiry commission, which has been investigating into allegations of land scam against the state government, is all set to deliver its first interim report. The state government has been accused of (among other irregularities) allotting to big industrial houses, land at throwaway rates.

“I will give the first report on land allotment by September 30,” said (retired) Justice MB Shah while talking to DNA. The commission’s term expires at the end of this month. On this, the former Supreme Court judge said: “I have not sought any extension. Let the government decide it.”

The commission has been enquiring into 15 allegations of corruption levelled against the state government by the Congress. The state government is accused of giving undue favours to big industrial houses. The state government had set up the commission headed by Justice MB Shah last year to probe the allegations. 

Three months back, the commission began its probe. The government is accused of allotting land at throwaway rates to the Adani Group in Kutch, Tata Motors Limited (TML) in Sanand; L&T; Chhatrala Hotel group and others in violation of the government’s rules and policies, all in the name of development and industrialization.  The sole objector to have appeared in the enquiry being commission is the People’s Union for Civil Liberties (PUCL) has demanded that officials of the state government and private entities be summoned in connection with the land allotment. However, the commission has not responded to its request yet. After delivery of the first interim report, the commission will start enquiring into other issues.

Auctions not...
The verdict comes as a relief to a government that is battling allegations of graft due to the non-competitive allotment of coal blocks to private companies. This came after a CAG report said the decision not to auction coal blocks led to a loss of Rs1.86 lakh crore to the exchequer. Telecom minister Kapil Sibal said institutions like CAG “might have perhaps unwittingly interpreted the SC judgment relating to the 2G case and thought that all natural resources must be auctioned,” he said. The SC has provided “Constitutional clarity” on the issue and “we welcome it.”

Law minister Salman Khurshid said the verdict was a “vindication” of the government’s stand on the issue. He said it would give the government important guidance as it takes its public policies forward. Answering only the key issue raised by the president, whether auction of all natural resources is warranted in law, the bench said the methodology pertaining to the disposal of natural resources “is clearly an economic policy”. “It entails intricate economic choices and the court lacks the necessary expertise to make them”. However, if such a policy decision is not backed by a social or welfare purpose, and precious and scarce natural resources are alienated for commercial pursuits of profit maximisation by private players, it can be scrapped for being violative of Article 14 of the Constitution, the court added. It said that court can’t mandate one method to be followed in all facts and circumstances. Thus, auction is not a “constitutional mandate”.

“Common good” is the “sole guiding factor for distribution of natural resources”, it said. Auctions may be the best way to maximise revenue but revenue maximisation may not always be the best way to serve public good, the judges said. It also held that there’s no “constitutional imperative” in the matter of economic policies and Article 14 does not redefine any economic policy as a constitutional mandate. The allegation that a policy decision could have the “potential for abuse” cannot be the basis for striking down a method as ultra vires the Constitution.