NEW DELHI, October 05, 2012 : The Supreme Court today asked the government's top law officer for clarifications on the notification of foreign direct investment in multi-brand retail sector. FDI in retail with conditions was cleared by the government last month.
The court is hearing a public interest litigation (PIL) against the policy. It has asked the attorney general or solicitor general to place the government's view on the PIL. The court's request is understood to be informal, in an attempt for it to fully understand the matter.
The PIL, filed by Supreme Court advocate ML Sharma, has challenged the FDI in retail policy on procedural grounds. It argues that existing Reserve Bank of India guidelines do not allow FDI in this sector and that the government has allowed this without changing RBI regulations.
The Supreme Court observed, "Policy is the sole prerogative of the government. Some may say it is good, some may say it is bad. But nothing ultra vires (against the law)." The court, while hearing the anti-FDI PIL, also said, "Don't change this court into making executive decisions. We have to see whether in the absence of amendment in the RBI regulations (if this) this notification will have legal sanction."
The Supreme Court observed, "Policy is the sole prerogative of the government. Some may say it is good, some may say it is bad. But nothing ultra vires (against the law)." The court, while hearing the anti-FDI PIL, also said, "Don't change this court into making executive decisions. We have to see whether in the absence of amendment in the RBI regulations (if this) this notification will have legal sanction."
This mirrors what the court had said while hearing the government's revision petition on the court's directions on auction of natural resources as well. The court will take up the case on Friday.
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