Coalgate

As correctly argued by Sunjoy Joshi in his article "The Emperor's New Clothes" (TOI Chennai dated October 1 , 2012 , any policy regarding the use of natural resources must ensure that any process of selection must not only be transparent but should also demonstrably be seen to be so. This is what the Supreme Court of India has also reiterated in its judgment. The CAG figures with regard to undue gains to individual companies need not be taken as absolutely correct but it certainly indicates the level of arbitrariness or favouritism shown in the process of allocation of spectrum or the coal blocks. 

For instance the CAG in his report tabled on the floor of Parliament on Friday, August 17, 2012 indicated that the government extended windfall gains (coal-gate) of Rs 1.86 lakh crore to private players by distributing coal blocks without bidding over the years. Even the high tenet of capitalism demands that the market forces should decide the actual prices of commodities - raw materials or the finished goods.

Seen in this context the politicians, courts and authorities should devise the ways of allocation in such a way that the process doesn't become questionable at a later date.

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