Attorney General G E Vahanvati, who commenced the arguments on the merits of the Presidential Reference arising out of the 2G spectrum verdict said, "I disagree that fairness and transparancy can be achieved only through auction".
Appearing before a Constitution Bench headed by Chief Justice S H Kapadia, he said "common good" is the sole guiding factor for distribution of natural resources.
He said this has to be done in accordance with sector- specific requirements in various ways as the route of auction can be "counter-productive" and can impact planned and coordinated growth of the economy.
He contended that natural resources must not be viewed only from the point of view of revenue generation.
The Februray 2 verdict on the 2G spectrum had held that all natural resources should be allocated through auction.
Disagreeing with the court's findings that the first-come -first-served (FCFS) policy was unconstitutional, the Attorney General said, "The touchstone for testing any policy of distribution of natural resources is whether it serves the common good."
"The norm of 'common good' has to be understood and appreciated in a holistic manner, keeping in mind the nature of the natural resource, the benefit to the country and the economy at large, and not merely by immediate financial gain by auction," he said. MORE