Official sources said Natarajan expressed the view that the CCI should not be an appellate authority when the Cabinet took up this proposal for clearance at its meeting.
Sources said Finance Minister P Chidambaram responded to this and asserted that the CCI will not function as an appellate body.
The Union Cabinet decided to set up the CCI under the Prime Minister to fast track approvals for mega projects of over Rs 1,000 crore and cleared the land acquisition policy for industrialisation.
Prime Minister Manmohan Singh is understood to have told the meeting there is general consensus for the CCI.
Union Tribal Affairs Minister Kishore Chandra Deo said the CCI should keep in mind the sacrosanct statutory mandate which his ministry had while giving clearance since the Forest Rights Act is administered by it.
Rural Development Minister Jairam Ramesh wanted the CCI to look into setting up projects in Naxal-affected areas.
Ramesh said the land acquisition policy was a clean proposal.
Civil Aviation Minister Ajit Singh sought clarifications on a clause relating to acquisition of land where compensation has not been made, sources said.
