Supreme Court seeks clarity on FDI policy

NEW DELHI: The Supreme Court on Friday sought a clarification from the government over Reserve Bank of India's clearance on the recent notifications allowing foreign direct investment in multi-brand retail and aviation.

A two-judge bench, comprising Justices RM Lodha and Anil R Dave, sought the assistance of the Attorney General or the Solicitor General to clear the air on the claims made in a public interest litigation filed by advocate ML Sharma.

The petition claimed that the FDI notifications violated existing laws and rules such as the Foreign Exchange Management Act (Fema) and the Insurance regulatory and Development Authority (IRDA) Act.

The petition raised several other objections against the policy, but the Supreme Court bench prima facie rejected most of them.

"Policy is the sole prerogative of the government. Somebody may say it is good, some may say it is bad," Justice Lodha said initially.