The government on Tuesday quoted the US President before Supreme Court's constitution bench to point out flaws in the apex court verdict that cancelled 122 2G spectrum licences and also directed Centre to auction natural resources.
Attorney General GE Vahanvati argued in favour of the maintainability of the Presidential Reference on 2G and said: “If all natural resources are auctioned, then India will become a laughing stock internationally. Foreign investors will say it is not safe to invest in India. Even the US President is saying it is not safe to invest in India.”
Vahanvati said the court's judgment on 2G had raised many fears and doubts among foreign investors which would adversely affect the economy.
“India will become a laughing stock internationally if we auction all our natural resources. Foreigners will say it is not safe to invest in India.”
Despite the AG’s vehemence, the bench did not appear impressed with his line of argument. Chief Justice of India SH Kapadia, heading the bench, said the investment argument would not hold as a ground to argue for maintainability of the reference.
The bench told the government to stick its argument to the point that the division bench in its February verdict went beyond the scope of spectrum allocation while holding auctions should be the mode for allocation of all natural resources.
Vahanvati disagreed with the court and said the judgment had led people to perceive the direction as the law of the country and has created an uncertain investment atmosphere in the country.