CAG should take note of SC auction ruling: Govt

Armed with the Supreme Court observation, the government on Friday said constitutional authorities like the Comptroller and Auditor General should take note of the ruling that auction is not the only method for allocating natural resources.

"I sincerely hope that all constitutional authorities in future will bear in mind (the observations of apex court) while discharging their constitutional functions", Finance Minister P Chidambaram said here, while explaining the importance of ruling along with Telecom Minister Kapil Sibal and Law Minister Salman Khurshid.

Chidambaram said this in response to a question whether the Supreme Court's opinion on Presidential reference vindicated the stand of the government on 2G and coal blocks allocation controversy. The CAG in its reports had observed that faulty allocation of spectrum and coal blocks had cost a big loss to the exchequer.

Giving its opinion on the Presidential reference arising out of 2G verdict, a five-judge constitution bench of the apex court on Thursday held that auction was not the only method for allocating natural resources to private companies.

The court observed that common good was the touchstone for any policy and any means adopted to achieve the objective was in accordance with the constitutional principles.

"The implied benchmark against which loss or presumptive loss was judged (by CAG) was auction...the Supreme Court says that auction is not a constitutional mandate for disposing of natural resources...I think in a way all of us are in a learning process", Chidambaram said.

As regards the irregularities in implementation of the policies, he said, "we have maintained... that if there were any irregularities or illegalities in implementation of any policy, those must be corrected and those responsible be held to account".