State Obligations to Preserve Common Good and Prevent Wealth Concentration

• The Constitution’s economic philosophy is rooted in socialist principles, primarily reflected in its Directive Principles of State Policy.
• The state’s obligation to ensure the distribution of “material resources of the community” to subserve the common good is outlined in Articles 39(b) and (c).
• A recent Supreme Court verdict rejected the expansive view of private resources as part of the community’s resources.
• The majority opinion suggests that the state’s consideration for acquiring or distributing private resources depends on non-exhaustive factors such as nature, necessity, scarcity, and consequences of concentration.
• Land acquisition is based on the principle of eminent domain, while natural resource allocation requires fair and transparent processes.
• Nationalization of utilities, services, and industries requires constitutional justification through the Directive Principles.
• Justice Sudhanshu Dhulia’s dissent questions the majority’s approach, highlighting societal inequality and questioning the scope of “material resources.”