Supreme Court Changes Rules on Private Property Ownership for Public Good

India's Supreme Court, led by Chief Justice DY Chandrachud, has redefined the way states can use private property for public benefit. In a major ruling, the court overturned an older verdict by Justice Krishna Iyer, which allowed states to acquire all private resources for distribution under Article 39(b) of the Indian Constitution. The new judgment clarifies that states can claim private resources only if they are “material resources” that significantly impact the community.

The court also decided that laws advancing the goals of Article 39(b) — aiming to use resources for the common good — will be protected under Article 31(C) of the Constitution. Chief Justice Chandrachud and six other judges agreed that, while states can manage these resources to benefit the community, they can’t automatically seize all private property. This ruling replaces past decisions that aligned with a socialist viewpoint, where states had broader power to take over private properties for public purposes.

This landmark decision ensures that only specific, community-relevant resources can be acquired by states, thus balancing private ownership rights with the community's interests.

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