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The short answer
Land acquisition compensation in Odisha is fixed under the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013. The Collector takes the market value (the higher of the benchmark value and recent sale prices), applies a multiplier of 1 to 2 in rural areas, adds the value of structures and trees, then adds 100 per cent solatium and 12 per cent a year from the preliminary notification. Objections are due within 60 days of the Section 11 notification, and a landowner who disputes the award can seek a reference under Section 64 within the time limits.
The law that applies
Land acquisition compensation in Odisha is now worked out under the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 (often shortened to RFCTLARR or the LARR Act), which replaced the Land Acquisition Act, 1894 from 1 January 2014. Land acquisition (jami adhigrahana) for roads, railways, irrigation, industry or urban projects in districts such as Khordha, Cuttack, Jajpur or Jharsuguda follows the same central Act, with procedural rules framed by the State's Revenue and Disaster Management Department. Rehabilitation (thaithana) is also governed by the Odisha Resettlement and Rehabilitation Policy, 2006 where it applies to a project.
In 2023 the Odisha Assembly passed a bill amending the 2013 Act as it applies to Odisha. The bill provides for the State to exempt notified categories of projects (such as defence, infrastructure, affordable housing, industrial corridors and linear projects) from social impact assessment and from the consent requirement outside Scheduled Areas. Check the current position with the Revenue and Disaster Management Department on whether these changes are in force, and whether a given project has been exempted, which is stated in its own notification; read the notification for your land.
The stages of an acquisition
| Stage | Section of the 2013 Act | What it means for a landowner |
|---|---|---|
| Social impact assessment (SIA) | 4 to 9 | A study of who is affected, with a public hearing in the area. The report is published. |
| Preliminary notification | 11 | Land is identified by mouza, khata and plot. Market value is fixed with reference to this date. Transactions in the land are restricted from here. |
| Objections | 15 | Any person interested may object within 60 days of publication to the area, the public purpose or the SIA findings, and is heard by the Collector. |
| Declaration | 19 | The final decision to acquire, with the rehabilitation and resettlement summary. Ordinarily within 12 months of the preliminary notification. |
| Notice to persons interested | 21 | You are asked to state your claims to compensation and rehabilitation. Respond in writing, with documents. |
| Award | 23 and 25 | The Collector's award of compensation and the rehabilitation award, ordinarily within 12 months of the declaration. |
| Possession | 38 | Taken only after compensation is paid or deposited and rehabilitation entitlements are provided as the Act requires. |
The Revenue Department publishes SIA notifications and notifications under Sections 11 and 19 on its land acquisition notifications page. Check the plot list against your Record of Rights.
How compensation is calculated
- Market value (Section 26). The highest of: the value under the Indian Stamp Act (the Sub-Registrar's benchmark value) for the area; the average sale price of similar land in the nearest village or vicinity, based on the top half of registered sale deeds over the previous three years; or the amount agreed where land is acquired for a private company or public-private partnership.
- Multiplier. In rural areas the market value is multiplied by a factor between 1 and 2 under the First Schedule, depending on distance from an urban area as notified by the State. In urban areas the factor is 1. Ask the Land Acquisition office which factor has been applied.
- Assets attached to the land (Section 29). Houses, wells, trees, crops and other structures are valued separately.
- Solatium (Section 30). A further 100 per cent of the total of the above.
- Additional amount. 12 per cent a year on the market value from the date of the preliminary notification to the date of the award or of possession, whichever is earlier.
Rehabilitation and resettlement entitlements are additional. The Second Schedule to the Act lists them, including a house for those who lose one, a choice of annuity or employment, subsistence and transport allowances, and a one-time resettlement allowance. Tenants, sharecroppers and families depending on the land may be entitled even if they do not own it.
Consent and Scheduled Areas
For land acquired for private companies, consent of at least 80 per cent of affected families is required, and 70 per cent for public-private partnership projects (Section 2(2)), subject to the State exemptions mentioned above. In Scheduled Areas of Odisha, acquisition requires the prior consent of the Gram Sabha or Panchayat concerned (Section 41). See the guide on tribal land for which areas are scheduled.
What a landowner should do at each stage
- Keep your papers in order. Mutation in your name, rent receipts, partition documents and legal heir papers make payment smoother. An unmutated owner or a dispute among heirs often leads to the amount being deposited rather than paid (see mutation in Odisha and legal heir certificates).
- File objections within 60 days of the Section 11 notification if the plot, area or purpose is wrong, or if less land could serve the purpose.
- Respond to the Section 21 notice with evidence of value: recent registered sale deeds nearby, the kisam and road access, and a list of trees and structures with photographs.
- Read the award and get a certified copy. You may accept payment under protest and still seek a reference.
- Where an heir has been left out, raise it before apportionment. Daughters have equal rights as heirs (see property rights of daughters).
Land acquisition objection and reference: challenging the award
A person interested who has not accepted the award can apply in writing to the Collector under Section 64 for a reference to the Land Acquisition, Rehabilitation and Resettlement Authority. A reference can cover measurement of the land, the amount of compensation, the person to whom it is payable, rehabilitation rights or apportionment among claimants.
- Time limit: within six weeks of the award if you were present or represented when it was made; otherwise within six weeks of receiving the Section 21 notice or within six months of the award, whichever ends first. The Collector may entertain an application within a further year if there was sufficient cause.
- The Collector must make the reference within 30 days. If not, the applicant can ask the Authority to direct the Collector to do so.
- An appeal against the Authority's award lies to the Orissa High Court within 60 days (Section 74), extendable by another 60 days for sufficient cause.
Ask the Land Acquisition office of the Collectorate where references from your district are heard. Where the acquisition itself is challenged (for example, for skipping a mandatory stage), the remedy is usually a writ petition in the Orissa High Court.
Interest, tax and unused land
- If compensation is not paid or deposited on or before taking possession, interest is payable at 9 per cent a year for the first year and 15 per cent after that (Section 80).
- No income tax or stamp duty is levied on an award or agreement made under the Act, except under Section 46 (Section 96).
- Land not used for five years from possession may be returned to the original owners or their heirs, or to the State land bank (Section 101).
- For acquisitions begun under the 1894 Act, Section 24 decides whether the old or new compensation applies and when proceedings lapse. These cases turn on their dates.
If you cannot afford representation for a reference or appeal, see free legal aid in Odisha. Related work is described under land and property and civil litigation, with the courts listed on the courts page.
Odia terms used in this guide
| Odia | Transliteration | Meaning |
|---|---|---|
| ଜମି ଅଧିଗ୍ରହଣ | jami adhigrahana | land acquisition |
| ଥଇଥାନ | thaithana | resettlement or rehabilitation |
Frequently asked questions
How is land acquisition compensation calculated under the 2013 Act?
Market value under Section 26 is multiplied by the First Schedule factor (1 to 2 in rural areas), the value of structures and trees is added, and then 100 per cent solatium is added. A further 12 per cent a year on market value runs from the preliminary notification to the award or possession.
What is the time limit to object to land acquisition in Odisha?
Objections under Section 15 must be filed within 60 days of publication of the preliminary notification under Section 11. The Collector hears the objector before reporting to the government.
How do I file a land acquisition reference against the award?
Apply in writing to the Collector under Section 64, within six weeks of the award if you were present, or otherwise within six weeks of the Section 21 notice or six months of the award, whichever ends first. The Collector must refer it to the Authority within 30 days.
Can I accept compensation and still challenge the amount?
Yes. You can receive the amount under protest and still apply for a reference under Section 64. Accepting it without protest can weaken a later challenge.
Is tax payable on land acquisition compensation?
Section 96 of the 2013 Act says no income tax or stamp duty is levied on an award or agreement made under the Act, except under Section 46. Confirm your own position with a tax adviser.
Where are land acquisition notifications for Odisha published?
The Revenue and Disaster Management Department publishes SIA notifications and notifications under Sections 11 and 19 on revenue.odisha.gov.in, and they are also published locally as the Act requires.
Official sources
- Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 (India Code)
- Revenue & Disaster Management Department, Odisha: land acquisition notifications
- Revenue & Disaster Management Department, Odisha: SIA notifications
- Odisha RFCTLARR (Amendment) Bill, 2023 (PRS Legislative Research)
- Orissa High Court, Cuttack
General information, not legal advice. Every matter turns on its own facts and documents, and the law and official procedures change. Check the current position with the concerned office, or take advice on your own facts, before acting.