New Delhi: The Supreme Court has reprimanded the pillars of the open market economy: liberalisation, privatisation and globalization. It observed that free market does not have solution to all the problems therefore the methodology has to be reconsidered. As a solution, the court also suggested for the regulation of the market.

The court maintained that free market economy without regulation will only bring a large-scale failure. This was also valid for the market which works on the efficiency basis. A bench of Justices B Sudarshan Reddy and SS Nijjar made the observation while discussing the market scenario in a case.

The issue was related to the hundred percent allotments of seats of Army Medical College to children of military personnel in Delhi. The Delhi government issued a notification and approved the allocation.

The SC bench while rejecting the notification of the government said, “The government in the name of free market cannot escape from its constitutional obligation under which it must work for welfare.”

It also said recent global financial crisis has once again proved the notion wrong that the market is always right and it can always provide the best solution for any problems. If the liberalization, privatization and globalization are being followed blindly by the world, there may be many adverse situations which cannot be avoided, the bench added.

The bench ordered that the government should regulate the open market economy, otherwise it will benefit only a handful of people and the rest will be left behind. As a result, social inequality will grow at a rapid pace and market instead of eradicating the problem will support it.

(JPN/ Bureau)