State can’t seize all private property for common good: Supreme Court

NEW DELHI: In a landmark decision, the Supreme Court ruled on Tuesday that government cannot take control of all private properties for distribution to the public. This 7-2 majority ruling clarifies that while states can acquire private land in specific situations, they lack the constitutional authority to seize all resources for the ‘common good.’
The nine-judge bench, led by Chief Justice DY Chandrachud, overturned previous rulings, including one by justice Krishna Iyer, which suggested that Article 39(b) of the Constitution granted states sweeping powers to acquire private resources.
The crux of the case revolved around whether private properties fall under the definition of “material resources of the community” as stated in Article 39(b). This article mandates that the state should ensure “that the ownership and control of the material resources of the community are so distributed as best to subserve the common good”.
The majority verdict, however, clarified that this article does not grant states unlimited power to seize private property. Justice BV Nagarathna presented a partially dissenting opinion, while Justice Sudhanshu Dhulia disagreed with the majority ruling entirely.
The Supreme Court’s decision stems from a case filed in 1992 by the Mumbai-based Property Owners’ Association (POA). The POA challenged a section of the Maharashtra Housing and Area Development Authority (MHADA) Act, which allowed state authorities to acquire buildings and land if 70% of the occupants requested it for restoration.