India

What is the process of land acquisition in India?

4x market value

Rural compensation

80% consent

Private project threshold

70% consent

PPP project threshold

6 months

SIA completion time

The Short Answer

Land acquisition in India is governed primarily by the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 (LARR Act), which mandates social impact assessment, consent from affected families, fair compensation (up to 4x market value in rural areas), and rehabilitation before acquisition.

What the Law Says

The Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 (LARR Act) replaced the colonial-era Land Acquisition Act, 1894. It introduces transparency, consent, and rehabilitation as mandatory steps.

The LARR Act applies to all acquisitions by the government or for public-private partnership (PPP) projects. It requires a Social Impact Assessment (SIA) before acquisition — to be completed within 6 months — and published for public consultation.

For private projects, at least 80% of affected families must give prior consent; for PPP projects, it’s 70%. Consent must be obtained through a transparent, documented process.

Compensation is calculated as up to four times the market value of land in rural areas, and two times in urban areas. In addition, landowners receive solatium (100% of compensation) and rehabilitation & resettlement (R&R) entitlements — including housing, employment, or annuity.

Once the Collector issues the award (under Section 23), it remains valid for only 2 years unless possession is taken or compensation deposited.

Statutory Text
No land shall be acquired in case of acquisition for private companies without the consent of at least eighty per cent of the families affected.
— Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013, s. 2(2) — Definition of 'private company'

Statutory Text
The compensation payable… shall be an amount equal to four times the market value in case of land acquired in rural areas…
— LARR Act, 2013, s. 26(1) — Determination of compensation

Statutory Text
The award made by the Collector under section 23 shall be valid for a period of two years from the date of its publication…
— LARR Act, 2013, s. 25 — Validity of award

What to Do

Ensure a Social Impact Assessment (SIA) is conducted and publicly disclosed before acquisition begins.

Obtain written consent from ≥80% of affected families for private projects (or ≥70% for PPP projects).

Calculate compensation as 4x rural / 2x urban market value + 100% solatium + R&R package.

Issue the award under Section 23 within statutory timelines and take possession or deposit compensation within 2 years.

Implement mandatory rehabilitation measures — including land-for-land, housing, skill development, or monthly annuity — as per Schedule I of the Act.

Sources

statuteRight to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013, s. 2(2) — Definition of 'private company'statuteLARR Act, 2013, s. 26(1) — Determination of compensation statuteLARR Act, 2013, s. 25 — Validity of award

Same Question, Other Jurisdictions

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.