By S&S Co. Advocates & Solicitors · Published 13 April 2026 · Informational content, not legal advice: see our disclaimer
The Statutory Framework
Land acquisition for most infrastructure projects in India: other than acquisitions under sector-specific statutes like the National Highways Act, 1956 or the Railways Act, 1989, which retain their own procedures. Is governed by the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 (RFCTLARR Act). The Act replaced the Land Acquisition Act, 1894 and introduced mandatory social impact assessment, higher compensation multiples, and defined rehabilitation and resettlement entitlements.
Social Impact Assessment: A Mandatory Threshold Step
Before most acquisitions for private or PPP projects (and for many public-purpose acquisitions), the acquiring authority must conduct a Social Impact Assessment (SIA) evaluating the acquisition's effect on affected families, public infrastructure, and the environment, followed by an SIA appraisal by an independent expert group. Skipping or inadequately conducting the SIA is one of the most common grounds on which affected landowners successfully challenge acquisition proceedings in court.
Consent Requirements for PPP Projects
For land acquired for PPP projects, the Act requires the prior consent of at least 70% of affected families whose land is sought to be acquired (80% for private company projects), obtained through a documented consent process. A requirement that has proven a significant practical constraint on land assembly timelines for several linear infrastructure and industrial corridor projects, and a frequent point of subsequent legal challenge where consent documentation is incomplete.
Compensation: The Multiplier Formula
The Act fixes compensation using a multiplier applied to the market value of the land: up to twice the market value in urban areas and up to four times in rural areas, subject to the specific multiplier fixed by the relevant state government within the Act's permitted range: plus a mandatory 100% solatium on the total compensation amount (market value plus other components), designed to ensure landowners receive a genuinely fair value rather than a purely notional market rate.
Rehabilitation and Resettlement Entitlements
Beyond monetary compensation, the Act mandates a rehabilitation and resettlement package for affected families: which can include land-for-land where feasible, housing benefits, subsistence allowances, and livelihood restoration support: administered under a scheme the acquiring authority must prepare and have approved before the award is made. Infrastructure project sponsors should factor R&R implementation timelines into their overall project schedule, since delayed R&R compliance is a recurring cause of stalled possession and construction start dates.
Frequently Asked Questions
Does the RFCTLARR Act apply to land acquired for a national highway project?
No: acquisitions specifically under the National Highways Act, 1956 follow that Act's own procedure, though certain RFCTLARR Act compensation principles (such as solatium computation dates) have been read into NH Act acquisitions by courts in specific contexts; the two statutes should not be conflated.
Can the mandatory Social Impact Assessment be waived for urgent infrastructure projects?
The Act provides limited exceptions and a separate urgency-acquisition mechanism in narrowly defined circumstances, but these are the exception rather than the rule, and an acquiring authority invoking urgency provisions to bypass the SIA should be prepared for the acquisition to face heightened judicial scrutiny.
What happens if fewer than the required percentage of affected families consent to a PPP project acquisition?
The acquisition for that project cannot proceed under the consent-based route until the requisite consent threshold (70% for PPP projects) is met. This is a threshold condition, not a target to be substantially achieved.
References & Further Reading
This article references the following statutory provisions. Readers should always verify current rules, fees and timelines against the applicable statute and rules as amended, since these are revised from time to time.
- Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013, Sections 4-9 (SIA), Section 26 (compensation) and the Second Schedule (R&R entitlements).