Right to Property under Article 300A

26 July, 2024

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Introduction

In India, the Right to Property has evolved significantly reflecting the changing socio-economic and political landscape of the nation. The Right to Property is a legal and constitutional principle that pertains to the ownership, use, and protection of property. It facilitates individuals and entities in enjoying their property without any unreasonable interference. Now the question is whether the ‘right to property’ is a fundamental right or not. Since 1950, when the Indian Constitution came into force, the right to property has been defined as a fundamental right under Article 31 and Article 19(1)(f). After the 44th amendment of the Constitution of India in 1978, Article 300A was introduced and Articles 31 and 19(1)(f) were repealed. Let us understand what is Article 300A of the Indian Constitution, Can the government acquire property under Article 300A, and What is the compensation for property acquired under Article 300A.

What is Article 300A of the Indian Constitution?

Article 300A of the Indian Constitution states that “No person shall be deprived of his property save by authority of law.” This means the government cannot arbitrarily deprive a person of their property without the backing of a valid law. As a result, the ‘right to property’ is now categorized as a constitutional right, which means it is protected by law but does not enjoy the same status as fundamental rights such as the Right to Freedom or the Right to Equality. The legal status of the ‘right to property’ was changed therefore, people were not allowed to approach the Supreme Court under Article 32 of the Constitution of India. The top court in the Jilubhai Nanbhai Khachar vs. State of Gujarat (July 20, 1994) case, held that “Right to property under Art, 300A is not a basic feature or structure of the Constitution. It is only a constitutional right.”

Can the government acquire property under Article 300A?

Yes, the government can acquire property under Article 300A, but such acquisition must comply with the law. Article 300A does not prevent the government from acquiring property; rather, it ensures that such acquisitions are carried out following the law. The process of property acquisition by the government is governed by various laws, including the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation, and Resettlement Act, 2013. This law stipulates that the government must follow due process, provide fair compensation, and adhere to prescribed procedures while acquiring property for public purposes. Therefore, while Article 300A protects property from arbitrary deprivation, it does not preclude the government from exercising its powers of acquisition as long as it follows legal norms. The Supreme Court of India in the Kolkata Municipal Corporation & Anr. vs. Bimal Kumar Shah & Ors. (May 16, 2024) judgment said, “Prescription of the necessary procedures, before depriving a person of his property is an integral part of the ‘authority of law’, under Article 300A.” Moreover, the bench constituting Justice PS Narasimha and Justice Aravind Kumar illustrates 7 sub-rights to be adhered to by the government while dealing with matters related to Article 300A of the Indian Constitution. These include:

“The Right to Notice: The duty of the State to inform the person that it intends to acquire his property
The Right to be Heard: The duty of the State to hear objections to the acquisition
The Right to a Reasoned Decision: The duty of the State to inform the person of its decision to acquire
The Duty to Acquire only for Public Purpose: The duty of the State to demonstrate that the acquisition is for public purpose
The Right of Restitution or Fair Compensation: The duty of the State to restitute and rehabilitate
The Right to an Efficient and Expeditious Process: The duty of the State to conduct the process of acquisition efficiently and within prescribed timelines of the proceedings
The Right of Conclusion: Final conclusion of the proceedings leading to vesting.”

What is the compensation for property acquired under Article 300A?

Article 300A of the Constitution of India itself does not detail the compensation procedure but the same is done by various laws and regulations. The primary legislation governing compensation for property acquisition is the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation, and Resettlement Act, 2013 (LARR Act). The primary aim of this act is “to ensure, in consultation with institutions of local self-government and Gram Sabhas established under the Constitution, a humane, participative, informed and transparent process for land acquisition for industrialization, development of essential infrastructural facilities and urbanization with the least disturbance to the owners of the land and other affected families and provide just and fair compensation to the affected families whose land has been acquired or proposed to be acquired or are affected by such acquisition and make adequate provisions for such affected persons for their rehabilitation and resettlement and for ensuring that the cumulative outcome of compulsory acquisition should be that affected persons become partners in development leading to an improvement in their post-acquisition social and economic status and for matters connected therewith or incidental thereto.” The Act mandates that compensation should be calculated based on various factors such as the market value of the land, the cost of any structures on it, and the impact on the livelihood of those displaced. Additionally, it provides for various entitlements to affected persons, such as rehabilitation and resettlement assistance, to ensure that the displacement caused by acquisition is managed effectively.

What are the exceptions to the Right to Property under Article 300A?

Article 300A of the Indian Constitution provides a legal ‘right to property,’ ensuring that no individual can be deprived of their property except by authority of law. However, this right is not absolute and is subject to certain exceptions and limitations. One such exception is that the government has the power of eminent domain which allows it to acquire property for public purposes such as urban developments, infrastructure projects, etc. that are beneficial for the community. This must be done by following an appropriate procedure and providing fair compensation to the owners.

Related Case Laws

State of Haryana v. Mukesh Kumar (September 30, 2011)
B. K. Ravichandra v. Union Of India (November 24, 2020)
Krishna Mandir Trust v. State of Maharashtra (August 07, 2020)

Conclusion

Article 300A of the Indian Constitution provides for the ‘right to property’, ensuring that no person is deprived of their property without legal authority. Although it does not confer the right to property as a fundamental right, it establishes that any deprivation must follow legal procedures and be accompanied by fair compensation. This framework balances individual property rights with the needs of the public, reflecting a nuanced approach to property law in India.