Attorney General Goolam Vahanvati on Tuesday drew the apex court’s attention to the call made by US President Barack Obama regarding the need for further foreign direct investment (FDI) in India and said that the country would become a laughing stock if auction was made the sole mode for allocation of all natural resources.
Continuing his submission on the Presidential Reference, issued on the 2G spectrum judgment before a five-judge Constitution Bench headed by Chief Justice S H Kapadia, Vahanvati said foreign investors would believe it was not safe to invest in the country.
According to the AG, the Supreme Court verdict had created tremendous confusion and it would have huge implications on foreign investment in the country. “It is not possible to adopt auctioning process for all natural resources. Why will anybody come to India if it is going to be challenged in the Supreme Court if any other method is adopted for allocating resources?” Vahanavati wondered.
Senior counsel T R Andhyarujina, appearing for the Federation of Indian Mineral Industries (FIMI) told the Bench that the Federation had a vital stake in the judgment of the apex court in the 2G spectrum case and it supported the Presidential Reference.