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What Is Eminent Domain?: Parties Public Utilities

Eminent domain refers to the power of the state to take private property for public use or projects in return for reasonable compensation defined as fair market value. Property may be taken for government or third party use if devoted to public, civic, or some economic development uses. Common uses include government buildings, utilities, highways, and railroads. Some jurisdictions require a purchase offer first before using eminent domain. The Constitution of India originally protected property rights but allowed laws for property acquisition or requisition by the state or federal government, interpreted as the source of eminent domain powers.

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59 views1 page

What Is Eminent Domain?: Parties Public Utilities

Eminent domain refers to the power of the state to take private property for public use or projects in return for reasonable compensation defined as fair market value. Property may be taken for government or third party use if devoted to public, civic, or some economic development uses. Common uses include government buildings, utilities, highways, and railroads. Some jurisdictions require a purchase offer first before using eminent domain. The Constitution of India originally protected property rights but allowed laws for property acquisition or requisition by the state or federal government, interpreted as the source of eminent domain powers.

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PREETHI M A
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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What is Eminent Domain?

Simply put, eminent domain is the power of the state to take private property for the use in a public project in return for
reasonable compensation. Reasonable compensation is defined in terms of fair market value of the property.

The property may be taken either for government use or by delegation to third parties, who will devote it to public or civic
use or, in some cases, to economic development. The most common uses of property taken by eminent domain are for
government buildings and other facilities, public utilities, highways and railroads, or for public safety. Some jurisdictions
require that the acquirer make an offer to purchase the subject property, before resorting to the use of eminent domain.

The Constitution of India originally provided for the right to property under Articles 19 and 31. Article 19 guaranteed to all
citizens the right to 'acquire, hold and dispose of property'. Article 31 provided that "No person shall be deprived of his
property save by authority of law." It also provided that compensation would be paid to a person whose property had been
'taken possession of or acquired' for public purposes. In addition, both the state government as well as the union (federal)
government were empowered to enact laws for the "acquisition or requisition of property" (Schedule VII, Entry 42, List III).
It is this provision that has been interpreted as being the source of the state's 'eminent domain' powers.

Elements of Eminent Domain

To exercise the power of eminent domain, the government must prove that the four elements set forth in the FifthAmendme
nt are present: (1) private property (2) must be taken (3) for
public use (4) and with just compensation. Theseelements have been interpreted broadly.

Private Property The first element requires that the property taken be private. Private property includes land as well asfixtu
res, leases, options, stocks, and other items. 

Taking The second element refers to the taking of physical property, or a portion thereof, as 
well as the taking of propertyby reducing its value. Property value may be reduced because of noise,
accessibility problems, or other agents. Dirt, timber,or rock appropriated from an  individual's land
for the construction of a highway is taken property for which the owner is
entitled to compensation. In general, compensation must be paid when a restriction on the  use of 
property is so extensivethat it is tantamount to confiscation of the property.

PublicUseThe third element, public use, requires that the property taken be used to benefit  the 
public rather than specificindividuals. Whether a particular use is considered public is  ordinarily a 
question to be determined by the courts

JustCompensationThe last element set forth in the Fifth Amendment mandates that the amount of  compensation
awarded when property is seized or damaged through condemnation must be fair to the public as well as to the propertyown
er   . 

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