When the government acquires land for public purposes—such as infrastructure, highways, railways, or town planning schemes—landowners are legally entitled to timely compensation. However, in many cases, authorities fail to disburse compensation within a reasonable time, causing immense financial and emotional hardship to affected landowners.

The law in India, particularly after the enactment of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 (LARR Act), provides several strong remedies to deal with such delays. Here is a detailed guide for landowners facing delayed compensation.

🔹 Why Does Compensation Get Delayed?

Common reasons include:

• Administrative backlog

• Delay in measurement or valuation

• Dispute regarding ownership or mutation entries

• Non-availability of funds

• Objections raised under Section 64

• Technical delays in award preparation or approval

• Pending litigations between co-owners

However, these reasons cannot justify indefinite delay, as landowners have clear statutory rights.

🔹 Legal Rights of Landowners Under the LARR Act, 2013

The 2013 Act mandates:

• Fair market value + multipliers + solatium of 100%

• Rehabilitation & resettlement benefits

• Timely payment of compensation

• Interest @ 12% per annum from the date of notification till award

Therefore, any delay not only violates statutory provisions but also triggers additional financial liability on the acquiring authority.

What Can a Landowner Do When Compensation Is Delayed?

Below are the key legal remedies:

1. File an Application Before the Land Acquisition Authority

If the award is passed but compensation is not released:

• The landowner can submit a written application to the Special Land Acquisition Officer (SLAO) seeking payment.

• The authority must respond and release funds within a reasonable time.

2. Demand Interest for Delayed Payment

Under Section 80 (LARR Act):

• Authorities must pay 12% interest from date of notification to award.

• If payment is delayed after the award, additional interest under Section 77(2) kicks in.

This can substantially increase the compensation amount.

3. File a Reference Under Section 64

If the compensation amount itself is disputed—or delay is unreasonable—the landowner can seek:

• Revision of compensation

• Direction for timely payment

The Reference Court can significantly enhance the compensation and direct interest.

4. Approach the High Court Under Article 226 (Writ Petition)

This is the strongest and fastest remedy.

A landowner may file a writ petition seeking:

• Direction to the authority to release compensation immediately

• Direction to pay statutory interest

• Direction to process rehabilitation/resettlement benefits

• Penalties or judicial censure in cases of gross delay

High Courts frequently intervene when authorities fail their statutory duties.

5. Claim Payment of Compensation Through Court (Deposit Procedure)

If authorities claim that compensation is deposited in court:

• The landowner can directly apply to the court to withdraw the deposited amount.

• If not deposited, the court may issue strict directions to deposit immediately.

6. File Contempt Proceedings

When the court has already ordered payment but authorities still delay:

• A contempt petition can be filed for wilful disobedience.

• Officers may face strict consequences, including fines.

7. Compensation Under Town Planning Schemes (Gujarat-Specific)

For acquisitions under:

• TP Schemes (GTPUD Act)

• Road widening

• Drainage or industrial zones

Landowners may:

• File objections before the Town Planning Officer

• Approach the State Government

• Move the High Court for non-payment of compensation or delay in allotment of final plots

Gujarat High Court has consistently held that undue delay in granting final plots or compensation is unconstitutional.

Practical Tips for Landowners

✔ Keep copies of all notices, TP scheme documents, award copies, and correspondence
✔ Ensure mutation entries (7/12, 8A, Form 6) are updated
✔ Seek professional assistance to calculate enhanced compensation
✔ Act quickly—delays reduce bargaining power

Conclusion

Delay in compensation is not just an administrative lapse—it is a violation of the landowner’s constitutional rights under Article 300A and statutory rights under the LARR Act. The law provides robust remedies, and courts are increasingly proactive in protecting affected landowners.

Whether through writ petitions, reference courts, or statutory applications, landowners have multiple avenues to secure fair and timely compensation.