Supreme Court Limits Government’s Power to Acquire Private Property for “Common Good”

In a landmark 8-1 ruling, the Supreme Court of India has clarified the scope of Article 39(b) of the Constitution, which empowers the state to ensure the equitable distribution of “material resources of the community.” The court held that not all private property can be deemed “material resources” for acquisition and redistribution by the government. The majority opinion, authored by Chief Justice D.Y. Chandrachud, emphasized that such an interpretation would be outdated and redundant in a modern, mixed economy. The court also affirmed that laws enacted to implement Article 39(b) are shielded from constitutional challenges under Article 31C, but stressed that any acquisition of private property must adhere to constitutional guarantees, including the right to equality and the right to property. Justice B.V. Nagarathna partially concurred, while Justice Sudhanshu Dhulia dissented, arguing that excluding privately-owned properties from the ambit of Article 39(b) could undermine the broader objectives of the Directive Principles of State Policy. The ruling reflects the evolving economic landscape of India and seeks to balance the state’s role in promoting social welfare with the protection of individual property rights.