Country endowed with a wealth of natural resources is likely to be plundered if the laws governing them are weak. And more so in the case of a lame duck government! That's exactly the story of India. As such, it is not at all a surprise that the country has been mired in various mining scams. The latest coal blocks allocation scam has created a huge uproar and put the Prime Minister in a tight spot.

If you may recall, in February 2012, the Supreme Court had ordered the cancellation of 122 2G licenses. It had affirmed that natural resources should be distributed through a public auction. Thereafter, the government moved a Presidential Referendum seeking the opinion of the apex court on whether auctioning of natural resources across all sectors is mandatory in line with its 2G spectrum judgement. Further, it also asked for clarity on which resources need to be auctioned and which ones can be allotted on a first-come-first-serve basis.

The Supreme Court is expected to deliver its verdict today. Whatever be the verdict, it will have long-term implications for how the country's natural resources are allotted by the government. How will this affect companies? If the court makes auctions mandatory, it will bring in transparency and fairness in the allocation process. We believe that it is high time the country's natural resources part ways with crony capitalism.