India's apex court, the Supreme Court of India has ruled that the government's decision to allow 51% foreign direct investment in the multi-brand retail sector in the country is constitutional valid.

A bench of Justices R M Lodha, Madan B Lokur and Kurian Joseph heard that the policy would help the eliminate the middlemen and allow the farmers to get a better price of their produce following arguments presented by the attorney general G E Vahanvati on behalf of the government.

"The middlemen are a curse to the country. They work like Shylocks and suckers. If they are sought to be thrown out of the system, what is wrong with the policy," the bench ruled.

The bench has also asked the petitioner advocate M L Sharma to show constitutional and statutory deficiencies in the policy that was approved by the union Parliament in December 2012 amid much controversy. Sharma said that the elimination of middlemen would not be a negative thing but the policy would affect small retailers.

Those who favor FDI in multi brand retail in India argue that it will address the issue of supply bottle necks, develop supply chain infrastructure, reduce wastage of food and improve efficiency, besides generating employment. They also say that it will benefit farmers, who will be able to negotiate better deals with large firms and ultimately, customers, who will get commodities at a cheaper price.

Opponents argue that the allowing big international players will affect small retailers, which dot the country's streets. They cite the examples of Thailand and Malaysia, which allowing FDI in retail has resulted in problems for small retailers.