Page 23 - The Mineral Development and Regulation Framework in India (English Version)
P. 23
Discussion Paper
natural resources to the highest bidder may Resources Allocation Reference [Natural Resources
not necessarily be the only way to subserve Allocation, In re, Special Reference No.1 of 2012;
the common good, and at times, may run {(2012) 10 SCC 1}] with reference to Article 39(b).
counter to public good. Hence, it needs little We are fortified in our view by a recent decision of
emphasis that disposal of all natural resources this Court (3-Judge Bench) in Goa Foundation {Goa
through auctions is clearly not a constitutional Foundation v. Union of India and Others; [(2014) 6 SCC
mandate. 590}] wherein following Natural Resources Allocation
Reference, it is stated, “…it is for the State Government
99. In light of the above legal position, the argument to decide as a matter of policy in what manner the leases
that auction is a best way to select private parties as of these mineral resources would be granted, but this
per Article 39(b) does not merit acceptance. The decision has to be taken in accordance with the provisions
emphasis on the word “best” in Article 39(b) by the of the MMDR Act and the Rules made thereunder and in
learned senior counsel for the intervener does not consonance with the constitutional provisions…”.
deserve further discussion in light of the legal position
exposited by the Constitution Bench in Natural
JANUARY 2015 23
natural resources to the highest bidder may Resources Allocation Reference [Natural Resources
not necessarily be the only way to subserve Allocation, In re, Special Reference No.1 of 2012;
the common good, and at times, may run {(2012) 10 SCC 1}] with reference to Article 39(b).
counter to public good. Hence, it needs little We are fortified in our view by a recent decision of
emphasis that disposal of all natural resources this Court (3-Judge Bench) in Goa Foundation {Goa
through auctions is clearly not a constitutional Foundation v. Union of India and Others; [(2014) 6 SCC
mandate. 590}] wherein following Natural Resources Allocation
Reference, it is stated, “…it is for the State Government
99. In light of the above legal position, the argument to decide as a matter of policy in what manner the leases
that auction is a best way to select private parties as of these mineral resources would be granted, but this
per Article 39(b) does not merit acceptance. The decision has to be taken in accordance with the provisions
emphasis on the word “best” in Article 39(b) by the of the MMDR Act and the Rules made thereunder and in
learned senior counsel for the intervener does not consonance with the constitutional provisions…”.
deserve further discussion in light of the legal position
exposited by the Constitution Bench in Natural
JANUARY 2015 23
