The Supreme Court on Tuesday questioned the Centre on various aspects pertaining to the allocation of coal blocks.
A bench headed by Justice R.M. Lodha repeatedly asked attorney-general G.E. Vahanvati to explain whether various methods adopted for coal block allocation since 1992 had a sanction of law and under what law the screening committee was authorised to decide on allocation.
The bench also asked why bidding procedure was not followed in allotting the valuable natural resource.
In response, the AG referred to the circumstances in 1992 which led to liberalised policy on coal block allocation. He said every participative procedure involving state government was followed at each stage of policy formation and the proposal for bidding procedure was made by the Prime Minister himself, adding that there has been no violations in the allocations.
When attorney-general Vahanvati was focusing his arguments on the 1992 liberalising economic policy, the bench asked him to come directly to the issue of allocation rather deliberating on the 1992 economic policy. “Policies might be based on prevailing circumstances at a given time. The question is whether the policy is in tune with the law. Once a policy has been framed, it must have sanction of law,” the bench said.