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An Explainer: Eminent Domain

August 05 2015   |   Proptiger

Eminent domain is the right of the central or state governments to take away private property for public purposes.

PropGuide Explains Eminent Domain

Throughout the world, state and national governments acquire property for public purposes. After seizing land from private individuals or agencies, governments either uses it or delegates it to other agencies to put it to public use. Mostly, such land is used to build road, railway lines, highways, airports or other infrastructure projects. 

The concept of eminent domain indicates that governments have almost absolute power over all the land within its territory. So, the concept of eminent domain is controversial in every part of the world. 

In India, the phrase "compulsory acquisition" is used instead of eminent domain. The original Indian constitution grants all Indian citizens the right to acquire, hold, and dispose off the property. According to the original draft of Indian constitution, this is a right which all Indian citizens have, except when they are deprived of it by the power of the law. But, over years, this right was diluted, though many activists and intellectuals have been arguing in the recent past that the property should be a fundamental right. Currently, compulsory acquisition in India is governed by The Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013. 

On August 3, the Narendra Modi government decided to accept the structure of the UPA government's 2013 Land Acquisition Bill. The NDA government had earlier made certain amendments to the Bill, including the exemption of certain projects from the requirement that land acquisition should have the consent of 70-80 per cent of the people. Such projects were also exempted from social impact assessment. But, widespread opposition to these amendments led the NDA government to forego their controversial amendments.

Check out PropGuide's comprehensive guide to real estate terms here.

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