In a landmark decision that could reshape property rights in India, the Supreme Court ruled on Wednesday that private property could be considered a resource for the public good under certain circumstances. This ruling dismisses the longstanding notion that once property is privatized, it does not serve the collective benefit as per Article 39(b) of the Constitution.
The nine-judge bench, led by Chief Justice D.Y. Chandrachud, clarified that the government could not appropriate private resources for public use arbitrarily, yet it should not entirely refrain from redirecting private resources to enhance societal welfare when necessary. This decision came as a response to the petitions filed by the Property Owners' Association of Mumbai and other stakeholders, who argued against the government's acquisition of private property without appropriate justification.
Highlighting the social context at the time of the constitution's framing, the bench emphasized that the intent of Article 39(b) was to facilitate the distribution of wealth to subserve the common good. It pointed out that the constitution's framers aimed at transformative changes in society, ensuring wealth redistribution to improve social welfare. Additionally, the court mentioned that the government has the authority to take over dilapidated buildings under specific Maharashtra legislation, setting a significant precedent for future property rights discussions.
