Can Government Acquire Private Property? Supreme Court Issues Landmark Decision

In a significant ruling, the Supreme Court of India, led by Chief Justice DY Chandrachud and a nine-judge Constitution Bench, has clarified whether the government can acquire private property and redistribute it for public benefit. The Constitution Bench delivered its verdict on Tuesday, November 5, following deliberations in May, where it had reserved its judgment on the matter of private property.

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The primary question before the court was whether provisions under Article 39(b) of the Constitution could allow the government to treat private property as community property for redistribution in the public interest. Chief Justice Chandrachud, delivering the majority opinion, stated that Article 31(c), which protects laws made according to Directive Principles of State Policy, is constitutionally valid.

Addressing Article 39(b), the Chief Justice noted that it deals with the redistribution of community property in the public interest but clarified that not all private property can be classified as community property. He acknowledged that earlier rulings on the matter were influenced by a particular economic ideology.

Chief Justice Chandrachud further explained that in the current economic landscape, the private sector holds significant importance. He emphasized that not every private property should be viewed as community property. However, under certain conditions, such as the nature of the property, its relevance to the public, and its scarcity, a private property could be designated as community property for redistribution.

This landmark decision brings clarity to the limitations and scope of the government’s power over private property, reinforcing the importance of both private ownership and public interest.