Land Acquisition by NHAI/JDA: What Every Farmer or Landowner Should Know

Abstract

Land acquisition in India has always been a balancing act between public development and private rights. The infrastructure expansion initiated by national and state authorities, such as NHAI and JDA, accelerates urban growth and economic progress but often instills fear, anxiety, and feelings of injustice in farmers, for whom land is tantamount to a source of livelihood. In this respect, the voyage from the colonial Land Acquisition Act, 1894, to the progressive Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013, drastically improved the legal protection for compensation, social impact assessment, and rehabilitation. However, irregularities, undervaluation, delayed payments, and procedural infringements are quite common. This paper highlights the legal rights of landowners, compensation frameworks, major case laws, and procedural safeguards along with practical legal remedies that will help to empower landowners in defending their rights sans fear.

Introduction

Land for a farmer is more than a title to property; it is dignity, culture, livelihood, and identity. Its acquisition often feels like the loss of the foundation one has built an entire life on. While the government does have eminent domain powers, those are not absolute. Article 300A of the Constitution prohibits deprivation of property except by authority of law.¹

Any land acquisition must, therefore, be strictly according to procedure, transparency, and just compensation standards. The rapid development of India needs roads, flyovers and smart cities-projects executed by NHAI and urban authorities like JDA. But development cannot justify exploitation. As observed by the Supreme Court, the right to property, though no longer a fundamental right, still remains a human rights. ²

This paper seeks to clarify the law so that all farmers understand:

•What authority can and cannot do? 

•What salary is reasonable? 

•What if the valuation is wrong? 

•What if possession is taken without payment? 

•How and where to challenge illegal acquisition?

Legal Framework of Land Acquisition

1. Who acquires land and under what provisions?

• NHAI National Highways Act, 1956³-Highways, expressways, national corridors

• JDA Jaipur Development Authority Act, 1982 Urban development, housing & planning

• District Collector/LARR Authority LARR Act, 2013 Compensation+ R&R implementation, Even when acquisition is initiated under a special Act like the NHAI Act, the determination of compensation has to be in consonance with the principles of fairness under LARR Act.

2. Stages of Acquisition — What Farmers Must Ensure

Preliminary Notification (Section 11, RFCTLARR Act)
Publication of notification in newspapers informing affected persons of the proposed acquisition, thereby granting the right to file objections under Section 15 of the Act.

  • Social Impact Assessment (SIA)

Assessment of the actual impact on livelihood, land use, and environment, ensuring participation of affected families and compliance with principles of transparency and fairness.

  • Final Declaration
    Formal confirmation of the public purpose and necessity of the project, with an opportunity for affected persons to raise grievances regarding necessity or scope of acquisition.
  • Award and Compensation (Valuation of Award)
    Determination of compensation, including market value and statutory solatium, with the right to object to under-assessment or improper valuation.
  • Rehabilitation and Resettlement (R&R) Implementation
    Implementation of resettlement and rehabilitation measures, securing the right to R&R benefits prior to displacement, in accordance with statutory and constitutional safeguards.
  • Taking of Physical Possession
    Physical possession of land only after payment of compensation and R&R entitlements, in consonance with Article 300A of the Constitution, ensuring protection against arbitrary deprivation of property.
  • Supreme Court: No possession without compensation is valid and enforceable.⁵

Compensation Formula: Know Your Entitlement
Calculation of Market Value

Compensation = Market Value × Multiplier + Solatium 100% + Assets Compensation + Interest @ 12%

Location Type Multiplier Allowed

Rural Area – 1.0 to 2.0 (farther village = higher) | Urban Area- 1.0

Other benefits payable:

•House for displaced families
•Transportation allowance ₹50,000
•Livelihood allowance ₹5,00,000 or annuity
•Employment where applicable

Market value of land must account for future potential and not just current use. In other words, if the highway or urban corridor increases future commercial value, then compensation must account for that potential.

Crop, Trees & Structures

  • Compensation consists of full value of wells, borewells, houses, cattle sheds, trees & standing agricultural produce.
  • JDA & NHAI cannot exclude a single livelihood-dependent structure. 

Landowners’ Rights: Know Your Power

• Right to Notice
• Right to Fair Market Value
•Right to Object
• Right to SIA
•Right to Rehabilitation & Resettlement
• Right to Court & Tribunal Remedy
• Right against Forced Eviction

Farmers cannot be pressurized into accepting low compensation.⁷

How Does A Legal Notice Strengthen A Property - Related Case ?

  • These judgments say loud and clear:
    Development cannot destroy justice.”

Consent and SIA – Not Formalities

  • Consent requirement applies mainly to PPP and private projects.
  • PPP (projects and projects undertaken by private companies): 70% consent required
  • Private companies: 80% consent required
  • Government-led projects (e.g., highways): No consent required
  • Social Impact Assessment (SIA): Mandatory in all cases
  • If serious livelihood impact is proved through SIA, the acquisition may be stayed

Public Purpose — Not a License for Abuse

Courts check genuineness of public purpose:

•If land is given later to private builders – Illegal acquisition
•If excess land is acquired beyond requirement of the project – Challengeable
•If the authority acts arbitrarily – Article 14 Infringement

Judicial review ensures fairness > force.

Procedural Violations: When Acquisition Becomes Illegal Violation Results- 

•Possession without award: The entire acquisition can be struck down. 

•Non-payment / delayed payment Proceedings lapse 

•No SIA done 

•Incorrect rural/urban classification Compensation increases 

•Lack of proper notice; Acquisition declared void

How to Challenge Under-Valued Compensation — Complete Legal Remedy Guide

Landowners do not lose their rights just because land is acquired. If compensation is low, wrongly calculated, or payment is delayed — law provides strong remedies.

Below is a clear issue-wise legal roadmap-

•Limitation: 6 months from award to seek enhancement.

Practical Legal Strategy for Farmers (Step-by-Step)

1. Collect Evidence

• Past sale deeds
• Circle rate records
•Crop income/production proof
• Photographs of structures, borewell, trees

2.Check Award Copy Carefully

•Have they added 100% solatium?
•Multiplying factor (rural) applied?
• Interest calculate is correct or not?


3.File Reference under Sec. 64 LARR

• Within 60 days — very important deadline
• To District Judge (Special LA Court)
• Court may grant 2x–4x enhancement

4.If NHAI case → Arbitration first But important:

Sign “Under Protest” on compensation receipt Otherwise, you lose right to challenge

5.If still unfair → High Court Write

For: procedural illegality / delay / harassment

Court’s View in Major Judgments

Courts have consistently backed farmers:

• Judicial Trend:

Development projects ≠ licence to take land cheaply.

Example — How Farmers Lose Big Without Awareness

Lack of legal awareness during land acquisition can cause severe losses to farmers. Often, authorities consider only the agricultural value of land, fixing compensation at around ₹20 lakh per acre, while the actual market value with future potential may be nearly ₹1.5 crore. This results in a loss of about ₹1.3 crore per acre. Greater awareness of valuation rights is therefore essential to prevent under-compensation.

Emotional & Social Impact — Invisible but Real
Loss is not only economic:

    • Development must uplift — not uproot.

Conclusion

India’s development dream- Bharat Mala highways, Jaipur smart city, logistics corridors-must coexist with the idea of Nyaya. LARR, in conjugation with the Constitution and judicial review, restrains the landowners from being mere victims to being participants. Each farmer should keep in mind that: “Zameen bikti nahi, qurbani hoti hai.” Authorities should respect the sacrifice of those who give up their land. Only then will development be inclusive, humane, and just. Farmers need not fear authority today. They must know their rights and fight for them. 

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