Indian apex court seeks clarification on legal sanctity behind FDI in retail

Friday, October 05, 2012
New Delhi: Indian Supreme Court on Friday asked the government's top law officer for clarifications on legal sanctity behind the Indian government's decision to allow FDI in retail sector and to open the Indian market for foreign supermarkets.

The apex court has sought the clarification that on what conditions the government has cleared the FDI in retail last month.

Hearing public interest litigation (PIL) against the approval of FDI policy, it has asked the attorney general or solicitor general to place the government's view on the PIL.

The court's request is considered to be informal, in an attempt for it to fully understand the matter. 

Earlier in this regard ML Sharma a Supreme Court advocate in his PIL filed to the apex court, has challenged the FDI in retail policy on procedural grounds. It argues that existing Reserve Bank of India guidelines does not allow FDI in this sector and that the government has allowed this without changing RBI regulations. 

The Supreme Court has strongly realised as it said while hearing the anti-FDI PIL, that the decision to allow FDI in multi-brand retail was the sole prerogative of the government as some has praised it while criticism over the issue can’t be denied, 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 government has made all its remarks, 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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