PRIVATE PROPERTY: POLITY

NEWS: Not all private properties can be used by State for the community: Supreme Court holds in majority decision

 

WHAT’S IN THE NEWS?

The Supreme Court stated that the state cannot acquire private property solely by claiming it as “material resources of the community” for the “common good,” marking limits on state power over private property.

Supreme Court Ruling on Private Property Rights

  • Landmark Judgment: The Supreme Court ruled that the state cannot claim private property as “material resources of the community” solely for “common good,” limiting state power over private property rights.
  • Shift in Economic Policy: The judgment recognizes India's shift from socialism to a balanced economy that includes both public and private investments.

Material Resources and the Community

  • Definition: "Material resources of the community" include all national wealth (both public and private resources) intended for the common good.
  • Directive Principles: Article 39(b) mandates state policies to ensure material resources serve the common good, while Article 39(c) seeks to prevent wealth concentration to the detriment of society.

Right to Property in India

  • Constitutional Change: The 44th Amendment Act (1978) removed the Right to Property as a fundamental right, making it a constitutional right under Article 300A.
  • Current Status: Article 300A requires lawful authority for property deprivation and demands compensation when the state acquires property for public purposes.

Doctrine of Eminent Domain

  • Definition: The state’s sovereign power to acquire private property for public use, provided just compensation is paid.
  • Legal Basis: Emphasizes state power with a condition for fair compensation to the property owner.

Constitutional Amendments Impacting Property Rights

  • First Amendment (1951): Protected agrarian reform laws under the Ninth Schedule from judicial scrutiny.
  • Fourth Amendment (1955): Enhanced the state’s capacity to acquire property for public purposes.
  • Twenty-Fifth Amendment (1971): Allowed state-determined compensation without strict adherence to market rates.
  • Forty-Fourth Amendment (1978): Transformed the Right to Property from a Fundamental Right to a constitutional right.

 Protective Clauses in the Constitution

  • Article 31A: Shields agrarian reform laws from equality and freedom-based challenges.
  • Article 31B: Protects laws in the Ninth Schedule from judicial review regarding fundamental rights under Part III, within the "basic structure" limits.

Key Judicial Interpretations

  • Kesavananda Bharati Case (1973): Established the "basic structure" doctrine, affecting amendments related to property rights.
  • Jilubhai Nanbhai Khachar Case (1995): Confirmed that Article 300A ensures lawful deprivation of property but does not guarantee compensation.

Source: https://www.thehindu.com/news/national/private-properties-cannot-be-taken-over-by-government-supreme-court/article68831508.ece