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CAG reports on coal, 2G and debate are reasons of Centre's plea: SC

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Coal block allocation

The Supreme Court was compelled to take "judicial notice" of the subject of allotment of natural resources as it was the matter of "extensive" debate, leading to the "wash out" of two Parliament sessions, Justice J S Khehar said on Thursday.

The CAG's computation of massive losses in 2G spectrum and coal blocks allocations and subsequent debate could be the reasons for the Centre filing the Presidential reference to seek opinion on methods to part with the natural resources, the judge said.

"But it does seem, that the Presidential reference is aimed at invoking this court's advisory jurisdiction to iron out the creases, so that legal and constitutional parameters are correctly understood," Justice Khehar said.

"One is compelled to take judicial notice of the fact, that allotment of natural resources is an issue of extensive debate in the country, so much so, that the issue of allocation of such resources had recently resulted in a washout of two sessions of Parliament.

"The current debate on allotment of material resources has been prompted by a report submitted by the Comptroller and Auditor General, asserting extensive loss in revenue based on inappropriate allocations," the court said.

The constitution bench, which held that auctions are not the only permissible method for disposal of natural resources, refused to be drawn into political debate, saying "This court is not, and should never be seen to be, a part of that debate."

The court, however, clarified that it cannot shy away from its constitutional duty to set the things right. The court also referred to the CAG report on coal blocks allocation.

The CAG, like its earlier report on 2G allocation, alleged that private and public sector companies made "windfall" gains in coal blocks allocations as the competitive bidding process was not adopted.

Dealing with the Presidential reference, Justice Khehar said, "One set of citizens cannot prosper at the cost of another set of citizens", but the process to part with the natural resources has to be decided by the government.

... contd.

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