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The right to property has always contradicted the state’s desire to use land and resources. As a result of these contradictions, the right to property, which was originally a part of our fundamental rights, was shifted to Article 300A of the constitution through the 44th Amendment in 1978. Despite this, multiple disputes over land have persisted in the last few decades. As a result, these sensitive issues were often resolved in the Supreme Court without any binding decision emerging till the most recent judgment by the apex court. In a significant judgment on private property, the court opined that not every resource of an individual can be considered a “material resource of the community”. The judgement simultaneously stated that while individual ownership is protected, this will not stand in the way of making essential resources, such as natural reserves or spectrum, available for the public benefit, if necessary. In essence, the judgment came to the conclusion that the state has a responsibility to ensure fair distribution of resources but it has to act within the limits laid down for individual rights.
This judgement is going to have a far reaching impact on the future of economic growth and development in India, but the nature of its impact will depend on legislative will. Firstly, the Supreme Court has to be congratulated for recognising the changing nature of economics, not only, in India, but also, globally. Today, private property and ownership forms the backbone of our economic system where talented and enterprising individuals make massive contributions to our GDP. In this economic climate, it’s essential for the court to unequivocally support property rights to maintain the upward trajectory of the Indian economy. It’s similarly essential for the court to state that just distribution of resources was the primary responsibility of the state. In stating this, the court also puts onus on the government to ensure that development isn’t lopsided and permeates to all the levels of the society.
While the judiciary has performed its function by delivering a landmark judgement, it is now time for the legislature to step up. For decades, land acquisition was done through a colonial Act before the law was amended in 2013. Even today, laws related to land acquisition remain unsatisfactory and hence the legislature and the executive need to reconfigure these strategies as soon as possible, in keeping with the Supreme Court’s judgement. The role of the private sector will also be important in this regard as, while their demands will be important in configuring the new laws on land acquisition, these actors also have to act responsibly and function in an equitable manner. The Indian constitution has never advocated for the separation of the market and the state, neither does this judgment; it is then essential that all the concerned actors contribute to more progressive legislations that are flexible enough to make India an attractive business location, while simultaneously ensuring a just distribution of economic and social resources.