The Indian Constitution follows socialist principles, especially in the Directive Principles of State Policy, which guide the state to promote social and economic justice.
The state must ensure material resources (land, natural resources, etc.) are distributed for the common good and prevent the concentration of wealth.
The courts have often had to decide how far the state’s actions can limit individual property rights in pursuit of social justice.
The Supreme Court’s nine-judge Bench ruled that not all private property falls under community resources in Article 39, rejecting a broader view from earlier precedents.
The Court said the state can acquire private property based on:
Nature and characteristics of resources
Scarcity of resources
Whether acquisition is needed for the common good
The state can acquire land through eminent domain or nationalize industries for public benefit, but this requires constitutional justification.
The majority opinion rejects a fixed economic ideology in interpreting the Directive Principles.
Justice Dhulia dissented, arguing the state should have broader powers to address inequality and that legislators, not the judiciary, should decide on property rights.
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