Supreme Court Judgment on Private Property Acquisition

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Source-This post on Supreme Court Judgment on Private Property Acquisition is based on the article “State cannot acquire property without proper procedure: SC” published in “The Hindu” on 17th May 2024.

Why in the News?

Recently, the Supreme Court made a pivotal decision to safeguard private property against arbitrary state acquisition for “public purpose”. The court ruled that compulsory acquisition without adhering to mandatory procedures, even if followed by compensation, is unconstitutional.

About Supreme Court Judgment on Private Property Acquisition

Supreme Court Judgment on Private Property Acquisition
Source: The Hindu

1. Constitutional Protection of Property: The Supreme Court, in a judgment by Justices P.S. Narasimha and Aravind Kumar, emphasized that the right to private property is protected under the Constitution and is also considered a human right.

2. Mandatory Procedures for Acquisition: The court declared that for a valid acquisition of property, it is not sufficient to just have the power of eminent domain and provide compensation. Proper legal procedures must be established and followed.

3. Article 300A: Despite the omission of the right to property as a fundamental right by the 44th Constitutional Amendment, Article 300A was added. It stated that no person shall be deprived of their property except by the authority of law. This involves adhering to due process.

4. Procedural Rights: These are the laws which act as the ‘machinery’ for enforcing rights and duties. The Supreme Court outlined seven procedural rights that need to be respected during property acquisition:
i) Right to notice – the duty of the state to inform the person about the intended acquisition.

ii)  Right to be heard – the state must listen to objections from the property owner.

iii) Right to a reasoned decision – the state must explain its decision regarding the acquisition.

iv) Demonstration of public purpose – the acquisition must exclusively serve a public purpose.

v) Right to fair compensation – the property owner is entitled to reasonable compensation

vi) Efficient process – the acquisition process should be conducted efficiently and within set timelines.

vii) Conclusion of proceedings – acquisition isn’t complete without the actual physical possession of the property being taken.

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