In a significant ruling on Tuesday, the Supreme Court of India declared that states do not have the authority under the Constitution to take over all privately-owned properties solely to distribute them in the interest of the "common good." This majority decision, delivered by a 7:2 bench, underscores the limited power of the state in taking control of private resources.

The nine-judge bench, led by Chief Justice DY Chandrachud, clarified that while states may assert claims over private assets in certain specific cases, they are not empowered to seize all private property at their discretion. Chief Justice Chandrachud, writing for himself and six other judges, overruled an earlier decision by Justice Krishna Iyer, which had allowed for the acquisition of privately-held resources by the state for broader distribution under Article 39(b) of the Constitution, according to PTI.