Government land acquisition compensation in India — RFCTLARR Act 2013: market value (s.26), solatium (s.30), award, s.64 reference within 6 weeks, Authority, High Court appeal 60+60 days, highway land, state differences (2026)
Plain map for landowners and families whose land is being taken by the government or a project: how compensation is worked out under the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 (market value under Section 26, First Schedule multiplier, value of assets, 100% solatium under Section 30); what the Collector’s award means; the Section 64 reference to the Land Acquisition, Rehabilitation and Resettlement Authority and its time limits; appeal to the High Court under Section 74; how highway acquisitions (National Highways Act, 1956) and State amendments differ; and what older 1894-Act cases should check. Educational only — not legal advice; Adhiwakta does not file reference applications or contact the Collector.
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Which law applies to your land
For acquisitions started on or after 1 January 2014 the 2013 Act (RFCTLARR) applies, unless the acquisition falls under one of the 13 laws in its Fourth Schedule (for example the National Highways Act, 1956) or a State has made a different rule. Cases begun earlier under the Land Acquisition Act, 1894 are governed by that Act, with Section 24 of the 2013 Act applying to some of them. Start by asking which notification (Section 4 / Section 11 under the 2013 Act, or old Section 4 / Section 6) covers your plot and its date.
How compensation is calculated — Sections 26–30 and the First Schedule
Market value is the highest of (a) the minimum land value in the Stamp Act schedule of rates, (b) the average of the top half of sale prices of similar land nearby in the preceding three years, and (c) consented compensation for private or PPP projects (Section 26). In rural areas the market value is multiplied by a factor of 1 to 2 (fixed by the appropriate Government according to distance from the urban area); in urban areas the factor is 1 — not a fixed ‘two’ or ‘four’ times. To this is added the value of buildings, trees, crops, wells and other assets attached to the land (Section 29), and then 100% solatium on the compensation amount (Section 30(1)). Section 30(3) also provides for an additional amount calculated at 12% per annum on the market value for the period the Act specifies. The exact application of these figures depends on your case — do not rely on any general multiple.
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The steps before the award (2013 Act)
A Social Impact Assessment, public hearing and expert review; preliminary notification (Section 11) with a 60-day window for objections (Section 15); declaration of acquisition (Section 19); the Collector’s notice to interested persons and enquiry; and the award (Sections 23 and 25). An award must be made within 12 months of the declaration or the proceedings lapse (Section 25). Possession is to be taken only after the compensation has been paid (Section 38). Read every notice, attend hearings, and file claims with documents on time — what you claim at this stage matters.
You think the award is too low — Section 64 reference
A person who has not accepted the award can apply in writing to the Collector to refer the matter to the Land Acquisition, Rehabilitation and Resettlement Authority (Section 64). The time limit is strict: six weeks from the date of the Collector’s award if you were present or represented at the time; otherwise six weeks from the Collector’s notice, or six months from the date of the award, whichever period ends first. Ask for a certified copy of the award and note the dates. Take care with receipts and signatures when you receive the payment — whether payment ‘under protest’ should be recorded is a case-specific question to settle before you sign anything.
Authority and High Court
The Authority decides the compensation afresh (Section 69), looking at whether the Collector followed Sections 26–30; it is not limited to checking arithmetic and can enhance the amount. An appeal against its award lies to the High Court within 60 days, which the High Court may extend by up to a further 60 days for sufficient cause, and no more (Section 74 — the Bombay High Court has held the 120-day outer limit cannot be exceeded). Section 96 provides an exemption from income tax on awards under the Act, subject to the Act’s own conditions — check the current tax position with a professional.
Highway land and other special laws
Land for national highways is acquired under the National Highways Act, 1956 (Section 3A onward); the competent authority fixes compensation under Section 3G and a dissatisfied owner goes to an arbitrator, not the 2013 Authority. By a 2015 order under the 2013 Act the First Schedule compensation and R&R provisions were extended to the Fourth Schedule laws, including highway acquisition; in Union of India v. Tarsem Singh (2019) the Supreme Court struck down Section 3J of the National Highways Act to the extent it denied owners solatium and interest. Check the notification and your State’s other special Acts (industrial development, town planning, housing) because compensation rules differ.
State differences
Several States amended the 2013 Act. For example, Tamil Nadu (2014) and Maharashtra (2018) inserted Section 105A with a ‘Fifth Schedule’ of State laws outside the Act’s compensation regime, with powers to apply parts by notification; Gujarat (2016) and Telangana made other changes. States also frame their own rules, set multiplier factors, and circle-rate schedules. Consent-based ‘land pooling’ schemes in some States are not compulsory acquisition and have their own terms. Check your State revenue / land-acquisition department’s current notification.
Older (1894 Act) cases and ‘lapsed’ acquisitions
Under the 1894 Act an owner who did not accept the award could ask the Collector for a reference to the civil court (old Section 18, with a similar six-week / six-month window). Some owners also claim that an old acquisition lapsed under Section 24(2) of the 2013 Act; the Constitution Bench in Indore Development Authority v. Manoharlal (2020) narrowed such claims and they depend on whether possession was taken and compensation paid or deposited. These cases are fact-heavy and deadline-sensitive.
Papers to keep
Ownership and mutation records, khasra / survey numbers, certified copies of notices and the award, sale deeds of comparable land (certified copies), valuation of buildings, trees and tube-wells, photographs, receipts of any payment and the dates you were served.
What this guide is not
It does not say how much compensation you will get, that an award is wrong, or that you will win a reference. Time limits are short and strict — always check the exact dates on your own papers.
How Adhiwakta can help
We do not file reference applications or High Court appeals, or contact the Collector or Authority. Adhiwakta is a facilitation platform, not a law firm. We do not file cases, appear before any authority, or promise any result. Use Ask Adhiwakta to describe your situation for general guidance from an independent advocate, or start with the AI helper to organise your facts and papers. Educational only — not formal legal advice.
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Frequently asked questions
- How is compensation calculated under the 2013 land acquisition law?
- Market value under Section 26 is multiplied by the First Schedule factor (1 to 2 for rural areas by distance, 1 for urban), the value of assets attached to the land is added, and 100% solatium is added (Sections 29–30). An additional 12% per annum on market value for the specified period is also provided by Section 30(3).
- How long do I have to challenge the Collector’s award?
- Under Section 64 you must apply to the Collector for a reference to the Authority: within six weeks of the award if you were present or represented; otherwise within six weeks of the Collector’s notice or six months from the award, whichever ends first.
- Can I appeal the Authority’s decision?
- Yes, to the High Court within 60 days, extendable by up to 60 more days for sufficient cause (Section 74); the Bombay High Court has held that 120 days is the outer limit.
- Is highway land acquired under the same Act?
- Highway land is acquired under the National Highways Act, 1956; compensation is fixed by the competent authority (Section 3G) and disputes go to an arbitrator. A 2015 order extended the 2013 Act’s compensation and R&R benefits to Fourth Schedule laws including this one.
- Do States change these rules?
- Yes. Several States have amended the Act or framed their own rules and multiplier factors, so check your State’s current notification.
- Does Adhiwakta file my reference application?
- No. Adhiwakta does not file applications or appeals or contact the Collector. Use Ask Adhiwakta or the AI helper for general educational guidance only.
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