Land aquisition procedure

Interactive Flowchart

flowchart TD A[Start: Project Planning and DPR Finalization
Land Requirements Identified] --> B[Appointment of Competent Authority for Land Acquisition - CALA] B --> C[Service of Individual Notices
Commonly called 3A notices
to Known Landowners] C --> D[Publication of Section 3A Notification
Intention to Acquire Land
e-Gazette plus two local newspapers] D --> E[Market Value Fixed as on 3A Date
12 percent annual interest starts
Survey and entry permitted under Section 3B] E --> F[Objections Invited
Within 21 days
Limited to necessity or public purpose] F --> G{CALA hears objections
Conducts inquiry and submits report} G -->|Objections upheld| H((Process revised or dropped)) G -->|Objections rejected| I[(Publication of Section 3D Notification
Declaration of acquisition
Within one year of 3A excluding stays)] I --> J([Land vests absolutely in Central Government
Free from all encumbrances]) J --> K([CALA determines compensation award
Section 3G
Market value plus multiplier
100 percent solatium plus damages]) K --> L([Deposit of compensation by NHAI or Central Government
Section 3H]) L --> M([Direct payment to landowners bank accounts
Via Bhoomi Rashi Portal and PFMS]) M --> N([Notice to surrender possession
Within 60 days under Section 3E]) N --> O([Physical possession taken
Handed over to executing agency]) O --> P{Dispute on compensation award} P -->|Yes| Q[Application for arbitration
Sections 3G-5 and 3J
Arbitrator appointed by Central Government] Q --> R[Arbitrator decision
Final with limited court intervention] P -->|No| S(End of land acquisition process) O --> S style A fill:#e6f7ff,stroke:#333 style H fill:#ffcccc,stroke:#333 style O fill:#d4edda,stroke:#333 style S fill:#d4edda,stroke:#333 style R fill:#fff3cd,stroke:#333

Key Notes (as of January 2026):

• The entire process is digitized via the Bhoomi Rashi Portal for notifications, approvals, and payments.
• No Social Impact Assessment, landowner consent, or full Rehabilitation & Resettlement required (unlike general RFCTLARR Act).
• NHAI's 336-day timeline framework (introduced April 2025) applies post-3D for award, payment, and possession.
• Compensation is enhanced: Market value × multiplier + 100% solatium + damages + 12% interest.

Detailed Land Acquisition Procedure under the National Highways Act, 1956

The National Highways Act, 1956 (NH Act) provides a dedicated and streamlined framework for acquiring land specifically for the building, maintenance, management, or operation of national highways in India. The core provisions are contained in Sections 3A to 3J.

Since a Central Government notification dated August 28, 2015, the determination of compensation follows the First Schedule of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 (RFCTLARR Act). This includes market value calculation, multiplication factors (up to 2x in rural areas, 1x in urban), and 100% solatium. However, the procedural steps remain governed by the NH Act, and the full Rehabilitation & Resettlement (R&R) provisions (Second Schedule of RFCTLARR) do not apply.

The process is overseen by the National Highways Authority of India (NHAI) or other agencies (e.g., NHIDCL, State PWDs). The Competent Authority for Land Acquisition (CALA)—typically a senior revenue officer appointed by the Central Government—plays a pivotal role. The entire workflow is now fully digitized through the Bhoomi Rashi Portal (launched in 2018), enabling online notification processing, approvals, and direct compensation payments via PFMS integration.

As of January 2026: No major amendments to the NH Act have been enacted in 2025. Proposals (circulated in March 2025) to return unused acquired land after 5 years and other reforms are still pending Cabinet/Parliamentary approval.

Step-by-Step Procedure

1. Preliminary Planning and Appointment of Authorities
   • Land requirements are identified during the Detailed Project Report (DPR) stage, including alignment finalization and joint measurement surveys (standardized templates introduced in 2025 for accuracy).
   • Central Government appoints the Competent Authority (CALA) for the project stretch.
   • Individual notices (commonly referred to as 3a notices) are served to known landowners and interested persons, informing them of the proposed acquisition and inviting early feedback/objections.
2. Section 3A: Intention to Acquire Land (Preliminary Notification)
   • The Central Government publishes the notification in the Official e-Gazette and two local newspapers.
   • It details the land parcels, purpose, and summary.
   • Key triggers from this date:
     • Determination of market value for compensation.
     • Additional 12% interest per annum on market value until award or possession.
   • Authorized officials may enter the land for surveys (Section 3B).
3. Section 3C: Hearing of Objections
   • Interested persons can file objections within 21 days of 3A publication.
   • Objections are limited to the necessity or public purpose of the acquisition.
   • CALA conducts an inquiry and submits a report to the Central Government.
4. Section 3D: Declaration of Acquisition (Final Notification)
   • After considering objections (if any), the Central Government publishes the declaration in the e-Gazette.
   • Land vests absolutely in the Central Government free from all encumbrances on this date.
   • Must be issued within 1 year of 3A (excluding periods of stay orders); otherwise, proceedings lapse.
5. Sections 3E/3F: Power to Take Possession
   • Post-3D and deposit of compensation, CALA directs landowners to surrender possession within 60 days.
   • Limited entry for urgent construction works is permitted even earlier (Section 3F).
6. Section 3G: Determination and Declaration of Compensation (Award)
   • CALA calculates and declares the award, considering:
     • Market value (higher of guideline rates or recent sales) as on 3A date.
     • Multiplication factor and 100% solatium (per RFCTLARR First Schedule).
     • Damages for standing crops, trees, structures, severance, etc.
   • Award specifies apportionment among interested parties.
7. Section 3H: Deposit and Payment
   • Amount is deposited by the Central Government/NHAI with CALA.
   • Direct disbursement to landowners' bank accounts via Bhoomi Rashi (often 80-100% upfront in practice).
   • Possession is generally taken only after payment.
8. Dispute Resolution (Sections 3G(5) and 3J)
   • Dissatisfied parties can seek arbitration before a Central Government-appointed arbitrator.
   • Arbitrator's decision is final, with limited scope for court intervention.
   • Enhanced awards may include interest.

Key Features and Recent Developments (as of January 2026)

• 336-Day Timeline Framework: Introduced via NHAI Policy Circular dated April 9, 2025, this mandates optimum completion of post-3D processes (award, payment, possession) within 336 days, with weekly/fortnightly monitoring and escalation protocols.
• No SIA, Consent, or Full R&R: Unlike general acquisitions under RFCTLARR, these are not required, making the process faster.
• Digital Transformation: Mandatory use of Bhoomi Rashi Portal for all notifications, approvals, and payments—significantly reducing timelines and enhancing transparency.
• Proposed Amendments (Pending): 2025 proposals include provisions for returning unused land after 5 years and restrictions on post-notification transactions to curb speculation.
• Urgency Provisions: Rarely invoked but available for national defense/emergencies.

This NH Act procedure is notably faster than the full RFCTLARR process, facilitating rapid highway development. Digitization and the 2025 timeline framework have further reduced delays.

For project-specific status, refer to the Bhoomi Rashi Portal or official MoRTH/NHAI guidelines.