Rendered with an 8-1 majority, the verdict clarified the interpretation of Article 39(b) of the Indian Constitution, outlining the boundaries of legislative power in acquiring private property for public use and setting down a precedent that is poised to have substantial implications for property rights and the State's ability to regulate resources deemed vital for the community. Article 39(b) is one of the directive principles of state policy (DPSP) which states that the "State shall direct its policy towards securing that the ownership and control of the material resources of the community are so distributed as best to subserve the common good."
Chief Justice of India Dhananjaya Y Chandrachud, authoring the majority opinion for seven of the nine judges, noted that Article 39(b) does not serve as a source of legislative power for the acquisition of private property. Instead, he clarified that the power to acquire private resources lies within other constitutional provisions, specifically citing the sovereign power of eminent domain and Entry 42 of List III in the Seventh Schedule, which allows the legislature to enact laws for property acquisition.
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