Can't be confined to auction alone for giving resources: Government

NEW DELHI: Government today told the Supreme Court that it cannot restrict itself to the route of auction in allocating natural resources which would depend upon the objectives for which they are alienated.

"In deciding which method of allocation is appropriate in a given case, one has to ask why the property or entitlement in question is being disposed of in the first place. The method of allocation would depend on the government's objectives which would, in turn, depend on the reason for disposing of the asset in question.

"Thus, it is entirely permissible for the government to choose different methods of allocation for different resources," Attorney General G E Vahanvati told a five-judge Constitution Bench headed by Chief Justice S H Kapadia.

The submission came during the hearing of the Presidential reference arising out of the February 2 judgement on 2G spectrum case in which it was held that all natural resources in all sectors should be allocated through auction.

He said the Public Trust Doctrine applied in the 2G verdict and other judgements of the apex court relating to natural resources like gas etc cannot be "misunderstood and misapplied" as its extension to some other judgements has led to "considerable confusion" and needs to be clarified by this court.

The bench, also comprising justices D K Jain, J S Khehar, Dipak Mishra and Ranjan Gogoi, was told that in several judgments it has been held that it is not necessary that in all cases of transfer or alienation of resources, the State is duty-bound to adopt the method of auction.