IndiaMy property was acquired but compensation is inadequate. What remedy?
You can challenge inadequate compensation before the Collector, then appeal to the Reference Court under the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 — within 6 months of award publication.
What the Law Says
The Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 (LARR Act) governs compensation for acquired land in India. It mandates fair, just and timely compensation — and provides a clear legal pathway to challenge inadequacy.
Under Section 24 of the LARR Act, 2013, if compensation has not been paid or possession not taken within five years prior to the commencement of the Act (i.e., before 1 January 2014), the acquisition lapses — unless the delay is due to a court order or the landowner’s refusal to accept compensation.
If compensation is paid but considered inadequate, Section 18 allows any person interested in the land to file a written application to the Collector within six months from the date of the award's publication. The Collector must then refer the matter to the Civil Court having jurisdiction (called the 'Reference Court') for determination of market value and additional compensation.
The Reference Court must decide the claim within 12 months of reference (extendable by 6 months for sufficient cause), and its award is binding unless appealed to the High Court within 60 days.
Statutory TextAny person interested who has not accepted the award may, by written application to the Collector, require that the matter be referred by him for the determination of the Court.
— Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013, s. 18(1) — Reference of matters to Court
Statutory TextWhere an award has been made under this Act and the Collector has taken possession of the land, the person interested may, within a period of six months from the date of publication of the award, make an application to the Collector...
— Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013, s. 18(2) — Time limit for application
What Courts Have Said
Indian courts have consistently upheld the right to challenge inadequate compensation and clarified procedural safeguards under the LARR Act.
Held that Section 24(2) of the LARR Act applies only where compensation was neither paid nor possession taken — and that mere deposit in court does not amount to 'payment' if not accepted by landowner.
Emphasized that compensation must reflect the market value as on the date of notification under Section 4(1), and that solatium and interest are mandatory additions.
What to Do
Within 6 months of award publication, submit a written application to the District Collector requesting reference to the Reference Court under Section 18.
Attach evidence of market value (e.g., recent sale deeds of comparable land, revenue records, expert valuation reports).
Appear before the Reference Court; it will determine fair market value, solatium (100% of market value), and interest (up to 12% p.a. from date of taking possession).
If dissatisfied with the Reference Court’s award, file an appeal before the High Court within 60 days.
If acquisition occurred before 2014 and no compensation was paid/possession taken within 5 years, consider filing for lapse of acquisition under Section 24(2).
Sources
Not legal advice. This article is general information based on publicly available sources, written for educational purposes. Laws change and individual situations vary. Consult a licensed attorney in your jurisdiction before acting on anything you read here. Last reviewed: 2026-06-08.