NEW DELHI: Attorney General R Venkataramani on Tuesday told a nine-judge bench of the Supreme Court of India that core government functions—especially sovereign duties and welfare obligations—cannot be brought under the broad definition of “industry” laid down nearly 50 years ago by a seven-judge bench.
Appearing before a bench led by Chief Justice Surya Kant, Venkataramani argued that activities carried out in discharge of constitutional and statutory responsibilities—such as building roads and railway lines, or establishing hospitals, schools, colleges, and universities—are fundamentally different from commercial or industrial operations.
He emphasised that when the government acts in areas like defence, the economy, or public welfare, it does so as part of its sovereign role. Attempting to isolate and label the “industrial” component within such activities, he cautioned, could lead to conclusions that are both legally unsound and impractical.
Supporting this view, Additional Solicitor General K M Nataraj and senior advocate Shekhar Naphade, representing Uttar Pradesh and Maharashtra respectively, argued that any government activity not rooted in commerce or profit-making should not be classified as an “industry.”
