The land acquired for road projects can be returned to the original owners if not used for 5 years

Last update:March 17, 2025, 13:55 IST

The center plans to return acquired land for roads if it is not used for 5 years, with the aim of optimizing the acquisition and addressing compensation disputes.

Unused land for 5 years to be returned to the original owners.

In a significant movement that could affect land owners throughout the country, the center is preparing to return acquired land for road construction if work has not started within five years. A proposal for this effect was sent to the Cabinet for approval, pointing out an important policy change aimed at rationalizing the land acquisition process and addressing compensation disputes.

According to a report by Toi, the Ministry of Transport by road and roads described key amendments to the National Road Law. According to the proposed changes, if the land acquired for road projects remains unused for five years, it will be returned to the original owners. In addition, the proposal establishes a strict term for compensation disputes: neither the authority of the road nor the owner may dispute the compensation announced after three months of their statement.

The changes are part of a broader effort to accelerate the construction of national roads and associated infrastructure, such as road services and operational facilities. The government expects these measures to minimize arbitration and accelerate the completion of the project. The proposal also includes provisions to declare exchanges between roads and other transport networks, such as railways and airports, such as national roads, ensuring that infrastructure development maintains the rhythm of future demands.

Several key ministries, including civil aviation, railroads, defense, shipping, coal, the environment and legal issues, have already presented their comments on the proposed amendments.

New rules on land transactions

The proposal includes strict rules to avoid the speculation and manipulation of the Earth. Once a notification for land acquisition is issued, transactions that involve the affected land will not be allowed until the acquisition process is completed. This measure aims to stop the cases in which owners build buildings or open businesses after the initial acquisition notice in an attempt to ensure greater compensation.

In order for the acquisition process to be more transparent and efficient, the Government plans to launch a dedicated online portal where the details of land acquisition can be accessed. Proposed amendments also seek to clarify compensation rules. The referee, when determining the amount of compensation, will be required to base the calculation of the land market value from the date of the first notification. This is intended to prevent inflated compensation claims and guarantee consistency in the awards.

Clearer terms for compensation and arbitration

The amendments establish clear deadlines to resolve compensation and arbitration disputes. The authorities will have a fixed period to determine the amount of compensation, and both the owners and the road authority will have a limited window to raise objections. The objective is to reduce prolonged legal battles and guarantee the timely resolution of disputes.