Why This Matters
The procedure is where the 2013 Act's protections become operational. The salient features discussed in Chapter 3.1 (SIA, consent, enhanced compensation, R&R) are meaningless without a step-by-step procedure that enforces them. Every procedural step carries a statutory timeline; failure to comply results in lapse of proceedings. The examiner tests procedure both as Part B long-answer questions (describe the entire acquisition process) and as Part A short notes on individual stages (SIA, preliminary notification, award, reference). Knowing the sequence — and the section numbers — is essential.
Chapter Overview
This chapter answers four questions:
- What is the step-by-step procedure? The complete sequence from SIA to possession.
- What are the statutory timelines? The mandatory deadlines at each stage.
- What happens if timelines are breached? Lapse and its consequences.
- How are disputes resolved? The Reference to Authority mechanism.
Chapter 3.1 covered the salient features and compensation framework. This chapter covers the procedural machinery that implements those features.
Statutory Skeleton
| Section | Provision |
|---|---|
| S. 4 | Preparation of Social Impact Assessment (SIA) study |
| S. 5 | Public hearing for SIA |
| S. 6 | Publication of SIA report |
| S. 7 | Appraisal of SIA report by Expert Group |
| S. 8 | Examination of proposals by Appropriate Government |
| S. 9 | Lapse of SIA report (if not used within 12 months) |
| S. 10 | Preliminary survey of land and power of officers |
| S. 11 | Publication of Preliminary Notification and land details |
| S. 12 | Preliminary survey of land after notification |
| S. 13 | Hearing of objections to acquisition |
| S. 14 | Preparation of R&R Scheme by Collector |
| S. 15 | Review of R&R Scheme by R&R Committee |
| S. 16 | Publication of R&R Scheme (with modifications if any) |
| S. 19 | Declaration of intended acquisition |
| S. 20 | Notice to persons interested (individual notices) |
| S. 21 | Enquiry by Collector and hearing of claims |
| S. 23 | Making of Award by Collector |
| S. 25 | Time limit: Award within 12 months of S. 19 declaration |
| S. 26–30 | Determination and payment of compensation |
| S. 31 | Consent: 80% (private) / 70% (PPP) |
| S. 37 | Taking of possession |
| S. 38 | R&R Award by Collector |
| S. 64 | Reference to Authority (disputes on compensation) |
| S. 69 | Land Acquisition, Rehabilitation and Resettlement Authority |
| S. 74 | Appeal to High Court from Authority's decision |
The Acquisition Process: Seven Stages
The land acquisition procedure under the LARR Act, 2013 proceeds through seven distinct stages. Each stage must be completed before the next can commence. The failure to comply with any mandatory stage renders the entire proceeding vulnerable to challenge.
- S – Social Impact Assessment (Sections 4–9)
- N – Notification: Preliminary (Section 11)
- O – Objections and Consent (Sections 12–13, 31)
- D – Declaration of Acquisition (Section 19)
- A – Award by Collector (Sections 20–23)
- P – Payment of Compensation and Possession (Sections 26–30, 37)
- R – Reference to Authority (Sections 64–74)
Stage 1: Social Impact Assessment (Sections 4–9)
Section 4: Preparation of SIA
Whenever the Appropriate Government intends to acquire land for a public purpose, it must first ensure that a Social Impact Assessment study is carried out in consultation with the concerned Panchayat, Municipality, or Municipal Corporation at the village or ward level.
The SIA must assess:
- Whether the proposed acquisition serves a public purpose
- The estimation of affected families and the number of families among them likely to be displaced
- The extent of lands, public and private, houses, settlements, and other common properties likely to be affected
- Whether the extent of land proposed is the absolute bare minimum needed
- Whether land acquisition at an alternate site has been considered and found not feasible
- The social impact of the project on the affected families
Section 5: Public Hearing
The SIA study must be conducted in the affected area through a public hearing process. The Appropriate Government must ensure that:
- A public hearing is held at the affected area for ascertaining the views of affected families
- The hearing is conducted after adequate publicity
- The proceedings are documented and form part of the SIA report
Section 6: Publication of SIA Report
The SIA report must be:
- Made available in the local language to the Panchayat, Municipality, or Municipal Corporation
- Published in the affected area
- Uploaded on the website of the Appropriate Government
Section 7: Appraisal by Expert Group
An independent multi-disciplinary Expert Group constituted by the Appropriate Government examines the SIA report. The Expert Group includes:
- Two non-official social scientists
- Two representatives of Panchayat/Municipality/Municipal Corporation
- Two experts on rehabilitation
- A technical expert in the subject related to the project
The Expert Group must assess:
- Whether the project serves a public purpose
- Whether the proposed extent of land is the minimum needed
- Whether alternative sites have been explored
- Whether the social cost and social impact have been correctly estimated
- Whether the overall costs of the project outweigh the potential benefits
The Expert Group submits its recommendations to the Appropriate Government within two months of its constitution.
Section 8: Government Decision
The Appropriate Government, after considering the SIA report and the Expert Group's recommendations, decides within two months whether to proceed with the acquisition, abandon it, or modify its terms.
Section 9: Lapse of SIA
If the Appropriate Government does not issue the preliminary notification under Section 11 within 12 months from the date of the SIA appraisal report, the SIA report shall be deemed to have lapsed. A fresh SIA must be conducted if the Government wishes to proceed after lapse.
Exemptions from SIA
Section 9(1) provides that SIA is not required in cases of:
- Urgency involving national defence and security (Section 40)
- Irrigation projects where Environmental Impact Assessment (EIA) has been carried out under another law
Stage 2: Preliminary Notification (Section 11)
Section 11: Publication of Preliminary Notification
After the Appropriate Government is satisfied with the SIA and Expert Group recommendation, and decides to acquire land, it publishes a Preliminary Notification in the following manner:
The notification must be:
- Published in the Official Gazette
- Published in two daily newspapers circulating in the locality (one in the regional language)
- Uploaded on the Government's website
- Affixed in conspicuous places in the affected area at the offices of Panchayat, Municipality, and Collectorate
The notification must state:
- The intent to acquire land for a public purpose
- The details of the land to be acquired (district, sub-division, taluk, village, survey numbers)
- The reasons and purpose of the acquisition
- A summary of the SIA report
- That all persons interested may file objections within 60 days
Section 12: Preliminary Survey
After publication of the preliminary notification, the Collector or any officer authorised by the Collector may:
- Enter upon and survey the land
- Take levels
- Dig or bore into the sub-soil
- Do all necessary acts to ascertain whether the land is suitable for the purpose
- Mark out boundaries and mark trees to be preserved or felled
Damage caused during survey must be compensated by the Collector (Section 10).
Land Records Update: The Collector must update land records within two months of the preliminary notification and complete the census of affected families and their properties.
Stage 3: Hearing of Objections and Consent (Sections 13, 15, 31)
Section 13: Hearing of Objections
Any person interested in the land may, within 60 days of the preliminary notification under Section 11, file objections in writing before the Collector. The Collector must:
- Give the objector a reasonable opportunity of being heard (either in person or through counsel)
- Consider the objections
- Submit a report to the Appropriate Government along with the objections, his recommendations, and the record of proceedings
The Appropriate Government, after considering the Collector's report, decides whether to proceed, modify, or abandon the acquisition.
Section 14–16: Rehabilitation and Resettlement Scheme
After hearing objections and if the Government decides to proceed:
- Section 14: The Collector prepares a Rehabilitation and Resettlement (R&R) Scheme for the affected families
- Section 15: The R&R Scheme is reviewed by a Committee constituted by the Appropriate Government at the project level, headed by the Collector with representatives of affected families
- Section 16: The R&R Scheme (with modifications if any) is published and made available to affected families
Section 31: Consent of Affected Families
For acquisitions for private companies and PPP projects, consent is obtained at this stage:
| Type of Project | Consent Threshold | Consent of Whom |
|---|---|---|
| Private company | 80% | Affected families (as defined in Section 2(2)) |
| Public-Private Partnership | 70% | Affected families |
| Government project | No consent required | — |
Procedure for obtaining consent:
- Written consent must be obtained from the required percentage of affected families
- Consent is obtained after the preliminary notification under Section 11
- The consent must be obtained prior to the declaration under Section 19
- Consent once given cannot be withdrawn
After Section 11 (preliminary notification) → Before Section 19 (declaration)
Consent sits between notification and declaration. Without the required consent (for private/PPP projects), the declaration under Section 19 cannot be made.
Stage 4: Declaration of Acquisition (Section 19)
Section 19: Declaration of Intended Acquisition
When the Appropriate Government is satisfied (after considering the SIA, Expert Group report, objections, R&R Scheme, and consent where applicable) that a particular land is needed for a public purpose, it makes a Declaration to that effect.
The Declaration must be:
- Published in the Official Gazette
- Published in two daily newspapers circulating in the locality
- Affixed in conspicuous places in the affected area
- Uploaded on the website of the Appropriate Government
The Declaration must contain:
- A description of the land sufficient for identification
- The district or other territorial division
- The public purpose for which the land is needed
- A summary of the R&R Scheme applicable
Critical Timeline: Section 19(2)
The Declaration under Section 19 must be made within 12 months of the date of the preliminary notification under Section 11. If the Declaration is not made within this period, the preliminary notification is deemed to have been rescinded. The acquisition proceedings lapse entirely, and a fresh process (starting from SIA) must be initiated.
Effect of Declaration: Section 19(3)
Upon publication of the Declaration:
- The land vests absolutely in the Government, free from all encumbrances
- However, the Collector must not take possession until compensation is paid/deposited and R&R entitlements are provided
Stage 5: Award by Collector (Sections 20–23)
Section 20: Notice to Persons Interested
After the Declaration under Section 19, the Collector must:
- Cause public notice to be given at convenient places in the affected area
- Direct all persons interested in the land to appear before him at a specified time and place
- State their claims for compensation (including amounts and interests in the land)
Section 21: Enquiry by Collector
The Collector conducts an enquiry to determine:
- The true area of the land
- The compensation payable for the land
- The apportionment of compensation among persons interested
- Any claims for trees, structures, or other improvements on the land
Persons interested must state the particulars of their claim, including the nature of their interest and the amount of compensation claimed.
Section 23: Making of the Award
After the enquiry, the Collector makes an Award which determines:
- The true area of the land acquired
- The compensation payable under Sections 26–30 (market value + solatium + multiplier + 12 heads)
- The apportionment of compensation among persons interested
- The R&R Award under Section 38 (entitlements for each affected family)
The Award is final and conclusive evidence of:
- The true area of the land
- The value of the land at the date of publication of the notification under Section 11
- The apportionment of compensation
Section 25: Time Limit for Award
The Collector must make the Award within 12 months from the date of publication of the Declaration under Section 19. If the Award is not made within this period, the entire acquisition proceedings lapse. A fresh notification under Section 11 must be issued if the Government wishes to proceed.
| Stage | Timeline | Consequence of Breach |
|---|---|---|
| S.11 → S.19 | Declaration within 12 months of notification | Notification deemed rescinded |
| S.19 → S.23 | Award within 12 months of declaration | Proceedings lapse |
Total maximum time from notification to award: 24 months.
Stage 6: Payment of Compensation and Possession (Sections 26–30, 37)
Payment of Compensation
The Collector must tender the compensation determined in the Award to the persons interested. The compensation must be paid before possession is taken (with limited exceptions).
Method of payment (Section 77):
- By direct payment to the person entitled
- By deposit in the court to which a reference would be made (if the person does not consent to receive, or if there is a dispute as to title, or if the person is absent)
Interest on delayed payment:
- 12% per annum on the compensation amount from the date of notification under Section 11 to the date of Award
- 9% per annum on the compensation amount from the date of Award to the date of payment (if there is further delay)
Section 37: Taking Possession
The Collector may take possession of the land only after:
- The full compensation as determined in the Award has been paid or deposited
- The R&R entitlements have been provided to the affected families (monetary component paid)
Exceptions: In cases of urgency under Section 40 (national defence/security only), possession may be taken before full payment, but compensation must still be paid within the prescribed time.
Notice of possession: The Collector must give not less than 60 days' notice in writing to the persons interested before taking possession.
📋 Facts: Land acquisition proceedings were initiated under the 1894 Act. The award was made and compensation was deposited in the Government treasury, but not paid to the landowners or deposited in court. When the 2013 Act came into force, landowners claimed the acquisition had lapsed under Section 24(2) because compensation was not "paid."
⚖️ Issue: Whether deposit of compensation in the Government treasury (as opposed to the landowners' accounts or in court) constitutes "payment" under Section 24(2)?
🏛️ Held: Compensation deposited in the Government treasury does NOT constitute "payment" under Section 24(2). For compensation to be considered as "paid," it must either be actually paid to the landowner OR deposited in the reference court. Mere deposit in the Government treasury is insufficient.
🎯 Principle: "Payment" under Section 24(2) requires either actual receipt by the landowner or deposit in the court under Section 64 reference. Treasury deposit is not payment.
⚠️ Note: This decision was effectively overruled by the 5-judge bench in Indore Development Authority v. Manoharlal (2020), which held that deposit of compensation in any mode (including treasury) prevents lapse. The 2020 decision is the current law.
Stage 7: Reference to Authority (Sections 64–74)
Section 64: Right to Seek Reference
Any person who is dissatisfied with the Collector's Award may, by written application to the Collector, require that the matter be referred to the Land Acquisition, Rehabilitation and Resettlement Authority (hereinafter "the Authority") for determination.
Who can seek reference:
- Any person interested who has not accepted the Award
- Any person interested who has accepted the Award under protest
Grounds for reference (the applicant may dispute):
- The measurement of the land
- The amount of compensation
- The persons to whom compensation is payable
- The apportionment of compensation among persons interested
- Any R&R entitlement
Section 64(2): Time Limit for Reference
The application for reference must be made:
- Within 6 months from the date of the Collector's Award, if the applicant was present or represented when the Award was made
- Within 6 months from the date of receipt of notice of the Award, if the applicant was not present
- Within 1 year from the date of the Award in any other case
Section 69: The Authority
The Appropriate Government constitutes a Land Acquisition, Rehabilitation and Resettlement Authority for the purpose of disposing of references. The Authority consists of:
- A presiding officer who is or has been a District Judge (or equivalent judicial officer with minimum 7 years' experience)
The Authority has all powers of a civil court under the Code of Civil Procedure, 1908, for the purposes of the reference.
Section 70: Procedure of the Authority
- The Authority follows the procedure prescribed by the CPC for trial of suits (as far as practicable)
- Evidence is recorded on oath
- Cross-examination is permitted
- The Authority can summon witnesses and compel production of documents
Section 71: Award of the Authority
The Authority re-determines the compensation based on the evidence before it. The Authority is not bound by the Collector's valuation. It may:
- Confirm the Collector's Award
- Enhance the compensation (most common outcome)
- Reduce the compensation (rare, but permissible)
Additional solatium: If the Authority enhances compensation, the enhanced amount also carries the 100% solatium and all other statutory benefits.
Section 74: Appeal to High Court
Any person dissatisfied with the Authority's Award may file an appeal to the High Court within 60 days from the date of the Authority's Award. The appeal lies on:
- Any question of law
- Any question of fact (where the Authority's finding is perverse or contrary to evidence)
No further appeal lies to the Supreme Court as of right. Access to the Supreme Court is through Special Leave Petition (Article 136).
📋 Facts: Under the Land Acquisition Act, 1894, the question arose whether a writ petition under Article 226 could be maintained to challenge acquisition proceedings, or whether the statutory remedy of reference to civil court was the exclusive remedy.
⚖️ Issue: Whether the High Court should entertain writ petitions challenging land acquisition proceedings when a statutory reference remedy exists?
🏛️ Held: The High Court should not ordinarily entertain writ petitions under Article 226 challenging land acquisition proceedings where the aggrieved party has the remedy of reference to the civil court (under the 1894 Act) or to the Authority (under the 2013 Act). The statutory remedy must be exhausted first.
🎯 Principle: Alternative statutory remedy (reference) must be exhausted before approaching the High Court under Article 226. Writ jurisdiction is discretionary and should not be invoked when an equally efficacious statutory remedy exists.
Collector's Award (Section 23)
↓ dissatisfied? (within 6 months / 1 year)
Reference to Authority (Section 64)
↓ dissatisfied? (within 60 days)
Appeal to High Court (Section 74)
↓ dissatisfied?
Special Leave Petition to Supreme Court (Article 136, Constitution)
Urgency Provisions (Section 40)
The 2013 Act severely restricts the use of urgency powers compared to the 1894 Act (where Section 17 urgency was routinely abused).
Section 40: The urgency provision applies ONLY when acquisition is for:
- National defence
- National security
- Any other emergency arising from natural calamities
In urgency cases:
- The Appropriate Government may direct the Collector to take possession before the Award
- But compensation must still be determined and paid
- The SIA is exempted in such cases
- R&R obligations continue to apply
| Dimension | 1894 Act (Section 17) | 2013 Act (Section 40) |
|---|---|---|
| Scope | Any purpose deemed urgent | Only defence, security, natural calamity |
| Usage | Routine (used for all types of projects) | Exceptional (strictly limited) |
| SIA | Not applicable (no SIA existed) | Exempted |
| Consent | Never required | Exempted in urgency |
| Compensation | Possession first, compensation later | Compensation must still be determined |
| R&R | Not applicable (no R&R existed) | R&R obligations continue |
| Judicial attitude | Courts rarely interfered | Courts scrutinise strictly |
Flowchart: Complete Acquisition Procedure
STAGE 1: SIA (S.4–9)
S.4 → Government directs SIA study
S.5 → Public hearing in affected area
S.6 → SIA report published (local language + website)
S.7 → Expert Group appraises (2 months)
S.8 → Government decides to proceed/abandon (2 months)
S.9 → ⚠️ SIA lapses if S.11 not issued within 12 months
│
STAGE 2: NOTIFICATION (S.11)
S.11 → Preliminary Notification published
(Gazette + 2 newspapers + website + local display)
│
STAGE 3: OBJECTIONS & CONSENT (S.12–16, 31)
S.12 → Preliminary survey after notification
S.13 → Objections heard (within 60 days of S.11)
S.14 → R&R Scheme prepared by Collector
S.15 → R&R Scheme reviewed by Committee
S.16 → R&R Scheme published
S.31 → Consent obtained (80% private / 70% PPP)
│
STAGE 4: DECLARATION (S.19)
S.19 → Declaration published
⚠️ Must be within 12 months of S.11 or S.11 lapses
│
STAGE 5: AWARD (S.20–23)
S.20 → Individual notices to persons interested
S.21 → Enquiry by Collector (claims and objections)
S.23 → Award made (area, compensation, apportionment)
⚠️ Must be within 12 months of S.19 or lapse
│
STAGE 6: PAYMENT & POSSESSION (S.26–30, 37)
S.26–30 → Compensation determined and paid
S.37 → Possession taken (60 days' notice)
Condition: Full compensation paid + R&R provided
│
STAGE 7: REFERENCE (S.64–74) [if disputed]
S.64 → Application to Authority (within 6 months/1 year)
S.69 → Authority hears and decides
S.74 → Appeal to High Court (within 60 days)
Common Confusions
The preliminary notification (Section 11) does NOT transfer ownership. It merely announces the Government's intent to acquire. Ownership vests in the Government only upon the Declaration under Section 19(3). Even then, possession cannot be taken until compensation is paid.
Consent under Section 31 is obtained AFTER the preliminary notification (Section 11) and BEFORE the Declaration (Section 19). The notification alerts affected families; consent is then sought during the objection-hearing stage.
The Collector's Award is conclusive only as to the area of land and its value for the Collector's purposes. Any person dissatisfied with the quantum of compensation can seek a reference to the Authority under Section 64. The Authority can enhance the compensation. Further appeal lies to the High Court under Section 74.
While the Government can restart the process, it must conduct a fresh SIA (Section 4), not merely re-issue the notification. The entire procedure must begin de novo, including public hearing, Expert Group appraisal, and consent (where applicable). The lapse wipes the slate clean.
The reference to the Authority is a statutory proceeding, not a civil suit. The Authority follows CPC procedure but is not a civil court. The reference lies only on grounds specified in Section 64 (measurement, compensation amount, persons entitled, apportionment). It is not a general challenge to the acquisition itself.
Key Takeaways
Seven Stages: SIA → Notification → Objections/Consent → Declaration → Award → Payment/Possession → Reference
Critical Timelines:
- SIA to Notification: 12 months (S.9) or SIA lapses
- Notification to Declaration: 12 months (S.19(2)) or notification rescinded
- Declaration to Award: 12 months (S.25) or proceedings lapse
- Maximum total time (notification to award): 24 months
Consent:
- Required only for private (80%) and PPP (70%) projects
- Obtained after Section 11, before Section 19
- Not required for Government projects
Dispute Resolution:
- Collector's Award → Reference to Authority (6 months/1 year) → High Court (60 days) → SLP to Supreme Court
Possession:
- Only after compensation paid AND R&R provided
- 60 days' notice mandatory
- Urgency (Section 40) only for defence/security/natural calamity
Key Cases:
- Indore Development Authority (2020): Section 24 lapse — deposit in any form prevents lapse
- Pune Municipal Corporation (2014): Treasury deposit is not "payment" (overruled by Indore 2020)
- Radhy Shyam (2011): Statutory remedy (reference) must be exhausted before writ petition
Memory Hooks:
- S-N-O-D-A-P-R: SIA, Notification, Objections, Declaration, Award, Payment, Reference
- Three 12-month timelines: SIA→Notification, Notification→Declaration, Declaration→Award
- 60 days: objection period after notification; notice before possession; appeal to HC
- 80/70: consent thresholds (private/PPP)
- Authority = District Judge level; Appeal = High Court