Explained: How a new Supreme Court ruling curtails government’s rights to acquire private property

A nine-judge Constitution Bench of the Supreme Court delivered a landmark ruling on Tuesday that restricted the powers of the state to acquire private property.

The ruling addressed the contentious question of whether private property could be targetted for acquisition and redistribution by the state. The judgement provided parameters for the exercise of the eminent domain power – the authority of the state to compulsorily acquire private property for public use, provided fair compensation is given to the owner.

The ruling is significant for property rights in India. It affirms that the government cannot broadly claim private property as “material resources” without considering its communal value and impact. This decision marks a shift from earlier interpretations, where the state had wider leeway to acquire private property under the guise of public good.

The judgement balances the Directive Principles with the need to respect private property rights. It reflects India’s shift towards a liberalised economy that fosters private enterprise while acknowledging the state’s role in ensuring social welfare. The Supreme Court’s case-by-case approach signals that future policies involving private property must meet rigorous constitutional scrutiny.

The judgement carries immense implications. It may shape legislative efforts related to property acquisition and social welfare. It might influence how political parties approach economic reforms...

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