'Right To Property Still A Constitutional Right': SC Says Compensation Based On 2003 Rates A Mockery Of Article 300A

Supreme Court has ruled that land acquisition without fair compensation cannot be permitted, saying that the right to property may no longer be a fundamental right, but remains a constitutional right.

New Delhi: The Supreme Court has said no individual can be deprived of their property without fair compensation as mandated by law. The court emphasised that while the right to property is no longer a fundamental right, it remains a constitutional right that must be protected. In a nearly two-decade-old case concerning land acquisition in Karnataka, the Supreme Court exercised its special powers to ensure enhanced compensation for affected individuals.

"Right to Property ceased to be a fundamental right by the Constitution (44th Amendment) Act, 1978. However, it continues to be a human right in a welfare State, and a constitutional right under Article 300A of the Constitution," the court said while delivering the judgment in an appeal filed against a Karnataka High Court decision from November 2022. 

The case involved land acquisition for the Bengaluru-Mysuru Infrastructure Corridor Project (BMICP). In 2003, the Karnataka Industrial Areas Development Board issued a preliminary notification for land acquisition for the project, and possession was taken in November 2005. However, landowners did not receive any compensation for 22 years.

A bench comprising Justice BR Gavai and Justice KV Viswanathan criticised the state government for its delay. In a welfare state, it is expected that the government will actively work to protect the interests of its citizens, the court said, adding that the government's role does not end with acquiring land for a project. It directed the state government to decide on compensation within two months.

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SC Orders Disbursement Of Enhanced Compensation In 2003 Case

The Supreme Court bench further clarified that compensation cannot be based on the 2003 market rates. It instructed the state government to calculate compensation based on 2019 rates, stating that using 21-year-old rates would make a "mockery" of the constitutional right to property. Leveraging its special powers under Article 142 of the Constitution, the court ordered the disbursement of enhanced compensation.

The judgment also addressed the evolution of the right to property. Following the 44th Constitutional Amendment in 1978, the right to property ceased to be a fundamental right but remains a constitutional right under Article 300-A. This article stipulates that no person can be deprived of their property except by the authority of law, requiring adherence to due legal process during property acquisition.

Along with ordering enhanced compensation, the Supreme Court assured the petitioners that the doors of justice remain open. If they are dissatisfied with the government's determination of compensation, they retain the right to seek legal recourse. The court also issued a strong advisory to governments nationwide, urging them to expedite decisions and disbursements in land acquisition cases. Swift resolution of such matters, the court said, is essential to safeguarding landowners' rights.