The Supreme Court today ruled government has to strictly comply with the twin conditions of acquiring land for "public purpose" and adequately fulfilling the "compensation" claim to the oustees.
"Public purpose is a pre-condition for deprivation of a person from his property under Article 300A and the right to claim compensation is also inbuilt in that Article and when a person is deprived of his property, the state has to justify both the grounds," a five-judge constitution bench headed Chief Justice S H Kapadia said.
It said justification of the grounds may depend on scheme of the statute, legislative policy, object and purpose of the legislature and other related factors.
The bench said the same principle would be applicable for the acquisition of land of foreign investors.
The issue of foreign investors was dealt by the bench as the Karnataka government had acquired the land which was sold to a private company K T Plantation by Russian-origin Roerich couple related with the family of nobel Laurette Rabindranath Tagore.
"Deprivation of property may also cause serious concern in the area of foreign investment, especially in the context of international law and international investment agreements.
"Whenever a foreign investor operates within the territory of a host country, the investor and its properties are subject to the legislative control of the host country, along with the international treaties or agreements. Even, if the foreign investor has no fundamental right, let them know, that the rule of law prevails in this country," the bench said.
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