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The Centre plans to return land acquired for highways if unused for 5 years, aiming to streamline acquisition and address compensation disputes.
Land unused for 5 years to be returned to original owners.
In a significant move that could impact landowners across the country, the Centre is preparing to return land acquired for highway construction if no work has been initiated on it within five years. A proposal to this effect was sent to the Cabinet for approval, signalling a major policy shift aimed at streamlining the land acquisition process and addressing disputes over compensation.
According to a TOI report, the Ministry of Road Transport and Highways outlined key amendments to the National Highway Act. Under the proposed changes, if land acquired for highway projects remains unused for five years, it will be returned to the original owners. Additionally, the proposal sets a strict deadline for compensation disputes: neither the Highway Authority nor the landowner will be allowed to contest the announced compensation after three months of its declaration.
The changes are part of a broader effort to accelerate the construction of national highways and associated infrastructure such as roadside amenities and operational facilities. The government hopes that these measures will minimise arbitration and speed up project completion. The proposal also includes provisions to declare interchanges between highways and other transport networks, such as railways and airports, as national highways, ensuring that infrastructure development keeps pace with future demands.
Several key ministries, including Civil Aviation, Railways, Defence, Shipping, Coal, Environment, and Legal Affairs, have already submitted their feedback on the proposed amendments.
New Rules on Land Transactions
The proposal includes stringent rules to prevent land speculation and manipulation. Once a notification for land acquisition is issued, no transactions involving the affected land will be allowed until the acquisition process is complete. This measure aims to curb cases where landowners construct buildings or open businesses after the initial acquisition notice in an attempt to secure higher compensation.
To make the acquisition process more transparent and efficient, the government plans to launch a dedicated online portal where details of land acquisition for highways will be accessible. The proposed amendments also seek to clarify compensation rules. The arbitrator, when determining the compensation amount, will be required to base the calculation on the market value of the land as of the date of the first notification. This is intended to prevent inflated compensation claims and ensure consistency in awards.
Clearer Timelines for Compensation and Arbitration
The amendments set clear timelines for resolving compensation disputes and arbitration. Authorities will have a fixed period to determine the compensation amount, and both landowners and the Highway Authority will have a limited window to raise objections. The goal is to reduce prolonged legal battles and ensure timely resolution of disputes.
