New Delhi Citing US President Barack Obamas remarks on the issue of FDI in India, Attorney General G E Vahanvati on Tuesday told the Supreme Court that the country will become a ‘laughing stock’if auction is made the only route for alloc
ation of natural resources.
Arguing on the presidential reference on allocation of natural resources arising out of 2- G spectrum verdict, Vahanvati quoted Obamas comments to buttress his arguments.
‘If all natural resources are auctioned, then India will become a laughing stock internationally. Foreign investors will say it is not safe to invest in India.
Even the US President is saying it is not safe to invest in India,’Vahanvati told a five- judge constitution bench headed by Chief Justice S H Kapadia.
The AG was referring to Obamas remarks that India had prohibited foreign investment in too many sectors such as retail. Obama also cited concerns over deteriorating investment climate to endorse another ‘wave’of economic reforms.
The government contended that apex courts verdict on 2G case has created tremendous confusion and it would have huge implication for foreign investment in the country.
‘It is not possible to adopt auctioning process for all natural resources. Why will anybody come to India, if the methodology for allocation of resources is going to be challenged in the Supreme Court,’Vahanvati said.
His arguments found support from various industries and corporate bodies. The corporate bodies also contended that all natural resources in all sectors could not be allocated by auction.
The court was told that the issue was limited to 2G spectrum but the judgement in the case covered all other natural resources which will have adverse impact on the mining industry which was regulated by a specific statute.
Taking note of the submission, the bench wanted to know whether the parties concerned in the matter were given opportunity to respond on the issue of other natural resources or not.
‘Were the parties given notices that the court was proceeding on other natural resources or only spectrum?’the bench asked, reports PTI.
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