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SC judgement will help boost investor sentiments: Moily

Last Updated: Sunday, September 30, 2012 - 12:04

New Delhi: The government is hopeful that the Supreme Court's significant ruling on allocation of natural resources will help boost investor sentiments and bring back confidence in the Indian economy.

"The Supreme Court judgement will definitely clear the way and clear the cloud ... It had international ramifications, it will send out a right message world over to the business community... They (the apex court) have also shown the way, as to how we should function," Minister for Corporate Affairs and Power Minister M Veerappa Moily told REPORTERS in an interview here.

The top court had on Thursday held that auction was not the only permissible method for allocating natural resources.

The ruling, he said, removes doubts that had been created by CAG audit reports that used auction as the benchmark for calculating presumptive losses in allocation of telecom spectrum and coal blocks.

"I am glad all the hallow that was created ... The corruption charges, the malafides, all that is over. The cloud has been cleared," Moily said. "This will certainly boost investor sentiments and bring back confidence (of investors)."

Moily said Prime Minister Manmohan Singh took decisions keeping "general good of the people" in mind, a principle that even the Supreme Court has enunciated.

The apex court gave its opinion after the government sought clarity on an earlier ruling that ordered the cancellation of 122 telecom licenses awarded in 2008 because the sale process was "flawed".

"In our opinion, auction despite being a more preferable method of alienation/allotment of natural resources, cannot be held to be a constitutional requirement or limitation for alienation of all natural resources," observed a five-judge constitution bench headed by the then Chief Justice S H Kapadia.

Stating that the court ruling was "a great landmark" in the history of the country, Moily said courts will come into picture is a policy is subverted or deviated.


First Published: Sunday, September 30, 2012 - 12:04
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