First Come First Served policy is fine but its implementation in allotting 2G is flawed, says Supreme Court

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New Delhi:  The Chief Justice of India made a strong observation in the Supreme Court today saying the 2G spectrum was allocated on the distorted First Come First Served Policy.

He said, "We find First Come First Served (FCFS) Policy is fine, but the implementation is flawed."

This came during the hearing of 2G Presidential reference by a five judge constitution bench.  

The Centre through the Presidential reference is seeking clarification whether the 2G judgment directing the centre to auction natural resources applies to spectrum only or all to natural resources.  

Today the judge posed questions to the Centre about the telecom policy in allotting spectrum from 2001 to 2007.

The Attorney General replied saying FCFS policy was there from 2001 but telecom players were limited. He said in 2007 along with applications with payment of entry fee of Rs 1600 crore was insisted and the allocation was done on the basis of who paid first, which was not done earlier.  

To this, the Chief Justice said, "Then it's ceased to be First come first served policy. If you say at the last minute - payment instead of date of application- then it is not FCFS, it is out of turn.  It not only changed the modality but criteria also. The policy can't be faulted because you insisted on the payments first."

The Attorney General also told the court that the Prime Minister had suggested auction based on a note sent to him by the Finance Secretary.

The 2G judgement delivered in February this year cancelled 122 telecom licences and held that FCFS policy is violation of right to equability and natural resources should be auctioned.  

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