Ananya Gupta & Aparna Ajay Krishnan, BBA-LLB(Hons), O.P. Jindal Global University
ABSTRACT
Eminent Domain remains one of the most debated topics in property law. The interplay of economics and the Doctrine of Eminent Domain gives a deeper understanding of inherent issues with it. Interestingly, if we try to look at the Doctrine from the lens of concept of Bentham Utility, the power derived by the government through the doctrine seems legible, though it is a superficial good in reality. It becomes but imperative to take a holistic approach to modify the understanding of the existing doctrine which would actually benefit the people and would balance out the power vested in the government. This paper essentially examines the operation of Doctrine of Eminent Domain in India and USA, thereby comparing and contrasting the situations in respective countries. The authors have approached the issue from the perspective of Holdout Problem which is one of the economic concepts of externality. By delving into detailed study of emergence of doctrine in both the countries and their operation/interpretation over the years through citing the case laws, the authors argue that The Doctrine of Eminent Domain is justified with the economic variables only if the compensation provided to the evicted persons is accepted by the person so evicted.
Keywords: Doctrine of Eminent Domain, Holdout problem, just compensation, public use, Takings Clause.
