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Govt proposes returning unused National Highway land to owners after 5 yrs

The govt has proposed amendments to the National Highways Act, allowing land acquired for highway projects to be returned to original owners if unused for five years

Contractors will now be given funds every month, rather than on the basis of the milestone achieved

Land acquisition for national highway construction projects | File Photo

Vasudha Mukherjee New Delhi

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The Centre has proposed amendments to the National Highways Act to return land acquired for highway projects to original owners if it remains unused for five years, according to The Times of India. The move is part of a broader initiative to speed up land acquisition and minimise disputes over compensation.
 
A proposal outlining these amendments has been submitted to the Cabinet for approval. Among the key changes, landowners and the highway authority will not be permitted to challenge compensation amounts more than three months after an award is announced.
 
The proposed amendments have been reviewed by multiple ministries, including civil aviation, railways, defence, shipping, coal, environment, and the departments of legal affairs and revenue.
 
 

Streamlining land acquisition

The changes aim to make land acquisition for National Highways (NH) and related infrastructure projects more efficient. To prevent speculative construction, the amendments will prohibit landowners from making transactions or encumbrances on the land once a government notification for acquisition is issued. In previous cases, some landowners constructed buildings or set up businesses to claim higher compensation.
 
Additionally, the government plans to introduce a dedicated online portal to publish land acquisition notices, enhancing transparency and providing easy access to information for stakeholders.
 

Fixed compensation for land

Under the proposal, arbitrators must determine compensation based on the market value of the land at the time of the first notification. This measure aims to prevent arbitrary compensation awards and lengthy legal disputes.
 

National Highway expansion

Another key provision in the amendments will allow the government to declare any interchange between highways and other transport networks, such as railways and airports, as part of the NH network. The change is intended to improve multimodal connectivity and support future infrastructure development.
 

Current land acquisition rules

Land for NH projects is currently acquired under Section 3 of the National Highways Act, 1956, with compensation determined under the First Schedule of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement (RFCTLARR) Act, 2013. The Ministry of Road Transport and Highways (MoRTH) had earlier issued detailed guidelines, including a manual in December 2018, to streamline the process.
 
If approved, the proposed amendments are expected to accelerate highway construction, reduce legal disputes, and ensure fair compensation practices.
   

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First Published: Mar 17 2025 | 2:08 PM IST

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