Government accepts auction route for spectrum sale; Swamy, Bhushan call on SC to return presidential reference

The central government today accepted before the Supreme Court the auction route for allocating 2G spectrum and attorney general G E Vahanvati told the apex court that the government favoured auction for future sale of spectrum. The government though remains undecided on whether the auction route should be followed for sale of all scarce natural resources to commercial parties.

The apex court had yesterday said it could not reject the presidential reference on 2G spectrum verdict merely on the grounds that it was moved with a "malafide" aim to continue with the opaque and arbitrary method of allocation of natural resources.

"We can't reject the reference on the ground that it is malafide and misleading. The last sentence is unwarranted," a five-judge constitution bench headed by chief justice S H Kapadia said while referring to the the submission of NGO, Centre for Public Interest Litigation (CPIL).

CPIL's counsel Prashant Bhushan had concluded his arguments on the maintainability of the presidential reference by saying that the basic object of the government in filing reference was to continue with the opaque, non-competitive, and arbitrary method of allocation of natural resources like minerals, oil etc to favoured companies at throwaway prices.

"Therefore, this is one additional reason for which this malafide reference should be rejected."

CPIL and Janata Party president Subramanian Swamy said the apex court should not extend any "help" to the centre as entertaining the reference would cause "impediment" and have "deep impact" on the trial of the case involving former telecom minister A Raja.