ABSTRACT
The use of eminent domain for the acquisition of land and property has been very controversial in the two largest democracies in the world, the United States of America and India. This power was vested in governments with the limitations that it be used only for public use and just compensation be paid. In the absence of constitutional interpretations of these two terms, use of the power has depended on the interpretation by the Legislature and Judiciary in the two countries. The chapter analyses the specific context of the use of this power for economic development and scrutinises the reasoning in landmark judgments such as Kelo and Singur, to show the expansion in scope of the power, particularly in the context of the neoliberal design of development. It is argued that the use of the standard proposed by Frank Michelman, which brings in demoralisation costs and helps to incorporate considerations of justice along with efficiency, is very relevant in this context to limit the number of projects that would pass the cost-benefit test.
