Explained: If the government takes over your property, will the Constitution justify it? Know Article 39(B)

basic approach to interpretation

Of course, the term ‘physical resources’ should also include public resources. The question is simple – does it also include private resources?

pay attention

The government nationalized 14 private banks in 1969 to ensure availability of loans to a large section of the population.

On the other hand, government control over business without adequate administrative structures also leads to inefficiencies. Air India is an example of this.

What are the possibilities?

A recent study conducted by the World Inequality Database states that economic inequality in India has become higher than it was during British rule. In view of this, Parliament could potentially introduce a ‘property tax’, under which all citizens with a certain net worth would be taxed at 2% of their wealth. There will be no point challenging the law for violating fundamental rights like ‘equality’, ‘life and personal liberty’ and ‘freedom of trade’ as Article 39(B) supported by Article 31C will come into force.

Another example includes a law to acquire all privately owned forest land across the country and distribute it among tribal communities who have been displaced due to climate change, infrastructure projects, internal conflicts, etc. The mere reference to Article 39(B) in such an Act would save it from being struck down.

The Directive Principles of State Policy are in accordance with the Gandhian ethos and ideology… We accumulate wealth for future generations of the family, but we also accumulate wealth for the wider community. This is the basic concept of sustainable and sustained development which we call equitable hereditary gift.

DY Chandrachud, Chief Justice, Supreme Court

real implications