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Eminent domain doctrine in India and the lack of due process — The Leatet
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wtseiz2, 1054 PM Eminent domain doctrine in India and the lack of due process ~The Lea
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Eminent domain doctrine in Indiajand the lack df due process
ANE Ree eo
The practise of the eminent domain doctrine in India is in abrogation of due process because there is no
clarity over what constitutes legitimate public purpose for which someone’ private property can be taken
away, and courts have no power to determine whether the compensation offered by the State is fair and
Just, writes DIVYANSHU DEMBI.
htpsthelealetinfrinent-domain-doctine-in-india-and:ihe
ofdue-process! atsre, 1054 Pa Eminent domain docine in Ina an the ack of Gus process The Lest
M. Hakeem had approached the Supreme Court with high hopes for increased and ‘just’ compensation
against the acquisition of his land under theNational Highway Authority of India Act, 1956(NHAI Act) by
v f
appointed to set a new compensation. The only twist being that the arbitrator in this case could only be
appointed by the central government, who unsurprisingly, is another government official. He again set a
compensation far below market value.
Frustrated, Hakeem approached the Supreme Court. The court, in its judgment in the case of Project
Director, NHAL vs,
compensation under the Act, which is that the court had no competence to enhance the compensation
Hakeem (2021) unflinchingly reiterated the settled position when it comes to
and could only either set the award aside, or remit it back to the arbitrator. In other words, somehow,
when it comes to land acquisition and compensation, the central tenet of a strong judiciary i. judicial
review, disappears
Hakeem, like many others, was left with whatever measly amount the government bothered to give him
for his land, and no recourse. However, the inability of courts to adjudicate on compensation of land
acquisition is nothing new and such injustice is unsurprising when we consider the history of eminent
domain doctrine in India.
Also read: Farmers relieved as J&K High Court halts forcible land acquisition in parts of state
Setting the stage
Even though some jurists argue that defining private property is impossible, we all have an idea of what
the term means in common parlance ~ any property that is privately owned and not meant for public
use,
‘To understand why property rights enjoy a central position in the constitutional history of nations, we
need to understand three main arguments:
First, that a robust right to property is a pre-condition for establishing a liberal and progressive society. It
is based on the idea that all human rights essentially boil down to property rights.
Second, because property rights essentially answer the question ‘what is the best use of this resource’ ~
only that person who owns it, or who comes to own it through a system of voluntary exchange, should
have the right to make this decision. No one else, not even the State, should make the decision for him.
Third, the Lockean idea of constitutional protection of private property is based on the notion that rights
are not created by the constitution, but are only protected by it. Such an understanding implies that the
constitution and the sovereign cannot take away property involuntarily.
Ithas been widely recognised both in courts and scholarship that strong property rights are a sine qua
non to economic prosperity. In Delhi Airtech Services Pvt Ltd v. State of U.P (2011), the Supreme Court
opined that “ijt is accepted in every jurisprudence and by different political thinkers that some amount
of property right is an indispensable safeguard against tyranny and economic oppression of the
Government”.
Eminent domain, simply put, is the State's power to acquire private property against the consent of the
owner for a ‘public purpose’. There are three commonly accepted elements to it. First, the taking should
be under a valid law. Second, the land owner must be paid just compensation. Third, the acquisition of
the property should only be for public purposes.
htpsthelealetinfrinent-domain-doctine-in-india-and:ihe
ofdue-process! antseiz2, 1054 PM Eminent domain doctrine in India and the lack of due process ~The Lea
‘To understand why even now, countless people like Hakeem are cheated out of the value of their land
with the courts being reduced to meck spectators ~ we need to go back to our founding
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A very old problem
Article 31 has the distinction of being one of the most debated and the most amended provision of the
Constitution, The constituent assembly under Jawaharlal Nehru was clear about the fact that India would
be formed as a socialist State.
However, at the time around 40-60% of the land in India was owned by wealthy landlords,
or zamindaars~ and such concentration of economic and social power went against the socialist logic.
‘The State wanted to bring large scale agrarian reforms and land redistribution, but this meant that under
the then constitutional regime that protected against arbitrary taking of private property, all
such zamindaars would have to be paid compensation for their lands.
Thus, they were in a conundrum. If they compensated these wealthy zamindaars, it would lead to the
same inequality that the reforms aimed to deconstruct. With one side arguing for giving no
compensation against acquiring zamjndaari land and the other side arguing for robust property rights
and just compensation, the debates were mainly centred on how to solve the zamindaari
inent domain power for the State. As I will show now, the assembly
issue without creating unchecked e1
failed to do either.
Out of this tension, article 31 was born. Article 31(2)
mentioned only ‘compensation’ instead of just’
compensation, and article 31(4) and 31(6) stated that if the
parliament passes any law that contravenes this article, it
could not be invalidated by any court. The assembly feared
that if they used the term ‘just’ compensation, the courts
would step into their agrarian reform agenda and thwart it,
either by setting an adequate compensation or invalidating
the law itself on grounds of violation of fundamental rights.
So, they bypassed the issues by structurally depriving the
courts of their power of judicial review, thereby driving a
coach and horses through due process of law.
The original sin of the framers was that they took themselves to be fortune tellers when they were not.
‘They believed that the inequality consolidated in colonial India would simply be replicated in a free India
without their central planning, They failed to understand that this inequality was a product of
colonialism - where neither man, nor commerce was free. And, in free India where both were free, the
same inequalities would break down with time.
A short history of the legal and political battle that the government fought with the judiciary aiming to
establish a command and control economy is reproduced below and also available here.
htpsthelealetinferinent-domain-doctrne-in-india-andhe
ofelue-process! ant118/22, 1054 PM
v
Eminent domain doctrine in India and the lack of due process — The Leatet
EMINENT
THE LEAFLET
CONSTITUTION FIRST
1950: PATNA HC INVALIDATES
BIHAR LAND REFORMS ACT
The government faced multiple legal challenges
to their land reform ogerda under crtiele 3
Aiterthe Potna HC decision, the state wanted to
protects agenda through otter means
1954: BELA BANERJEE CASE
The court reads just compensation’ inte article 3]
1964: P. VAJRAVELU CASE
The court again interpreted that i can decide on
camparsarion inland acquisition cates whan
the compensation soomed ‘ison
1964: SAJJAN SINGH CASE
The conettutional validity of Th amandment
The Court held the
amendment 10 be valid
wor challenged,
‘THE HISTORY OF EMINENT DOMAIN IN INDIA IS
DEFINED BY THE POWER STRUGGLE BETWEEN
THE PARLIAMENT AND THE JUDICIARY,
ULTIMATELY RESULTING IN DELETION OF
‘ARTICLE 31 OF THE CONSTITUTION
1951: FIRST AMENDMENT
31A gave eminent domain legislations mmurity against
articles 14 and 19 challenges. 31B introduced the
Infamous ninth schedule that geve camplate immunity
egninet judicial revew to any lew passed by pariament
1955: FOURTH AMENDMENT
‘Amended 31(2) to include ‘and no such low shal be
called in question in any court on the ground that
the compensation provided by that law is not
edequate' to remove courts ability to adjudicate on
compensation.
1964: 17TH AMENDMENT
Parliamont added oll fand raform laws te nicth
schedule to bypass jocliial review.
1967: GOLAK NATHCASE
Overtumed Sojan Singh and stated that
parlamont could not pass any law (includng
lond reform legislation) that abridged
hitpsteleeletinleminent-domain-doctrne-in-indi-and:ihe-lackot-ve-pracess!18/22, 1054 PM Eminent domain doctrine in India and the lack of due process — The Leatet
fundamental ight
1969: BANK NATIONALISATION 4
y f
f 1970: RC COOPER CASE
Eloven judge bench strusk down the ordinance on
various grounds, inter alia, that it does nat provide far
compersaton underrelevant principles
hitpsitelesletinleminent-domain-doctrne-in-india-and-ihe-lackot-ve-process! ent118/22, 1054 PM
1973: KESAVNANDA B. CASE
‘Questioned the Kerala Land reforms act, and! also
24th, 25th and 29th amendment. I judge bench
gove bith to basic structure’ doctine. Did not
held right to property as part of the basic
shucture
1975: EMERGENCY DECLARED
1977: 44TH AMENDMENT
Altor emergency ended, the newly elected JP
government undicl most of 42rd amendment but
olko deleted article 31, along with I9(IKf), They
rentroduced it as article 300A of the
constitution, no longer a furdamenta right
2009: SANJIV AGGARWAL WR.
Wht petition osted the Supreme Cout to
invalidate the Forty Fourth Amendmont and
renstate the Right fo Property 03 a fundarnenval
‘ight justotable under Article 32, Discarded ond
‘ot heard on meri,
Eminent domain doctrine in India and the lack of due process — The Leatet
1971: 24TH AND 25TH
AMENDMENTS
24th amendment was meant fo counter decision in Golah
Nath ond gave the pariament obsolute discretion te
‘omend the constitution. 25th omendmeat replaced the
word ‘compensation wih amount’
1975: 39TH AMENDMENT
Added more land reform and netionalizing
legislation to the ninth schedule.
1976: 42ND AMENDMENT
Gove primacy to directive panciples over
furdemental nights. Declared supromacy of
porlioment over censttution and cours,
1977: ARTICLE 300A
Right fo property row only a lege right, The
text roads ‘no poxen shall be deprived of his
property save by the outhorty of law!
2011: KT PLANTATION CASE
The court reads in public purpose ond
compensation os requrement jor exercising
‘eminent domain under 300A,
htpsthelealetinferinent-domain-doctine-i-india-and-he-ackotue-process! mm18/22, 1054 PM Eminent domain doctrine in India and the lack of due process — The Leatet
Also read: At the Heart of Lakshadweep ‘Shock Therapy’ Lies a Policy to Grab Land
The ghosts of yesterday
The questionable history (and thus present) of eminent domain practice in India betrays due process in
two ways. Procedurally - by wholly depriving the courts on adjudicating on the quantum of
compensation itself, as seen in M, Hakeem and, substantially ~ by depriving the courts of adjudicating on
whether the taking constitutes a valid use of eminent domain doctrine or not.
This is sinister yet unsurprising because the constituent assembly itself never intended to observe due
process of law. And the ball that they set rolling is still bulldozing the property rights of countless.
individuals.
It is also important to notice how the assembly, in their obsession with the zamindaari problem,
myopically drafted the taking clause which talks about property generally, as if it was only to be used for
agrarian reforms. Because the assembly wanted to take away land for agrarian reform without paying the
compensation, instead of creating an exception for the same, they included this lack of due process in the
clause itself, which meant that the government could choose to not pay just compensation for taking
away any property and not just property for agrarian reform.
This is precisely what happened. Drafting a clause with the intention to be misused specifically, will with
time, be misused generally.
The culmination of this history is twofold:
First, is that we still do not have a clear and defined idea of precisely when (beyond the vague public
purpose test) is it legitimate for the government to take away land, and thus as a result lack substantive
restrictions upon that power. This is why numerous people like Hakeem can have their lands taken away
from them because the government simply states that their land is required for ‘public purpose’ without
the courts going into the merits of the claim.
Second, even when such power is exercised legitimately, the consistent practice of depriving the courts
from adjudicating upon the justness of the compensation continues to constitute a fraud on the judicial
power of the court and constitution, and continues to constitute an unjust exercise of State power. Which
is why people like Hakeem, even when their land is legitimately needed for public purposes, are never
paid just compensation.
hitpstelealetinleminent-domain-doctrine-in-indi-and:ihe-lackot-ve-pracess! ants22, 10:54 Pat Eminent domain doctrine in India and the lack of due process — The Leatet
Also read: The mask of ‘adla badli’: How Chhattisgarh government steals adivasi land on behalf of
Bhilai Steel Plant
v f
wnere are we now:
The Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement
‘Act, 2013 (LARR) - the generic takings legislation in India does define public purpose, but the net it spins
for what constitutes public purpose is as wide as imaginable and thus offers no real change from its
previous act ~ the Land Acquisition Act, 1894, which did not define public purpose at all.
te Even though LARR provides for challenging the
compensation by approaching the high court, most
individuals whose lands are taken away are poor and
cannot bear the cost of litigation. A study of 1660
judgements from the Punjab and Haryana High court
showed that the average compensation is only about one
fourth of the market value of the land. Given that the
default in land acquisition cases is measly compensation,
the NHAI Act is even more notorious in so far as it does not
even provide for effectively challenging the compensation
set by the government at all, with the arbitrator being a
government employee himself and the court not being
competent fo enhance the arbitral award.
Since land is on the Concurrent list of the Constitution's Seventh Schedule, many states have either
severely diluted the LARR to skip basic requirements, or have completely bypassed the Act
by invoking outdated legislations through their power under Article 254(2). Many states also use these
outdated laws to acquire land for purposes that may not come strictly under the public purpose
definition - such as constructing an oil refinery, building a factory, and opening a burial ground, among,
other things. Given that these are not strict public goods, what legitimacy does the State have to exercise
its eminent domain powers in these cases? This is exactly where the lack of a strong eminent domain
doctrine hurts us.
‘Thus we currently need two things. First, is to grant courts the ability to decide on compensation in order
to ensure that people get just compensation. And secondly, to develop a robust doctrine of eminent
domain use itself through legislative codification and judicial decisions.
(Divyanshu Dembi is a second year L.L.B student at Jindal Global Law School, Jindal Global University.
The views expressed are personal.)
htpsthelealetinfrinent-domain-doctine-in-india-and:ihe
ofdue-process! ontsa, 10:54 Pat Eminent domain doctrine in India and the lack of due process — The Leatet
Divyanshu Dembi
Divyanshu Dembi is a second year L.L.B student at Jindal Global Law School, Jindal Global
University.
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