Section 38 Land Acquisition Act 2013 - Power to Take Possession of Land
Section 38 of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 regulates when the Collector may take possession of acquired land. It links possession with payment or tender of compensation and rehabilitation and resettlement entitlements and requires completion of rehabilitation and resettlement before affected families are displaced.
Section 38 - Power to take possession of land to be acquired
(1) The Collector shall take possession of land after ensuring that full payment of compensation as well as rehabilitation and resettlement entitlements are paid or tendered to the entitled persons within a period of three months for the compensation and a period of six months for the monetary part of rehabilitation and resettlement entitlements listed in the Second Schedule commencing from the date of the award made under section 30:
Provided that the components of the Rehabilitation and Resettlement Package in the Second and Third Schedules that relate to infrastructural entitlements shall be provided within a period of eighteen months from the date of the award:
Provided further that in case of acquisition of land for irrigation or hydel project, being a public purpose, the rehabilitation and resettlement shall be completed six months prior to submergence of the lands acquired.
(2) The Collector shall be responsible for ensuring that the rehabilitation and resettlement process is completed in all its aspects before displacing the affected families.
Meaning and effect of Section 38
Section 38 makes possession part of a sequenced acquisition process. The Collector is required to ensure the statutory compensation and rehabilitation and resettlement requirements are met in accordance with the provision before possession and displacement take place.
- Compensation must be paid or tendered to entitled persons within three months from the date of the award referred to in Section 30.
- The monetary part of rehabilitation and resettlement entitlements listed in the Second Schedule must be paid or tendered within six months.
- Infrastructural entitlements under the Second and Third Schedules must be provided within eighteen months from the date of the award.
- For acquisition for an irrigation or hydel project for a public purpose, rehabilitation and resettlement must be completed six months before submergence of the acquired land.
- The Collector is responsible for ensuring completion of rehabilitation and resettlement in all respects before affected families are displaced.
What is compensation under the 2013 Act?
The compensation payable in a land acquisition is determined through the statutory award process. Sections 26 to 30 contain important provisions concerning determination of market value, calculation of compensation, valuation of things attached to land or buildings, and solatium. Section 38 then connects payment or tender of compensation with the stage at which possession is taken.
Rehabilitation and resettlement entitlements
The Act does not treat acquisition as only a payment for land. Rehabilitation and resettlement measures form part of the statutory framework. Section 31 concerns the Rehabilitation and Resettlement Award for affected families, while the Second Schedule specifies elements of rehabilitation and resettlement entitlements and the Third Schedule addresses infrastructural amenities. Section 38 establishes time requirements relevant to these benefits before possession and displacement.
Meaning of affected family
The expression "affected family" is defined in Section 3 of the RFCTLARR Act. The definition covers specified families whose land, livelihood, tenancy, forest rights or other recognised interests are affected by acquisition. Whether a particular person or family falls within the statutory definition depends on the facts and the applicable clauses of Section 3.
Role of the Collector
The Collector is the statutory authority responsible for important stages of the acquisition and award process. Under Section 38(2), the Collector bears express responsibility for ensuring that rehabilitation and resettlement is completed in all its aspects before affected families are displaced.
Section 38 and taking possession
The central safeguard in Section 38 is the link between possession and compliance with compensation and rehabilitation and resettlement obligations. The provision should be read with the award provisions, the Rehabilitation and Resettlement Award under Section 31, the applicable Schedules, and any State rules, amendments or notifications relevant to the acquisition.
Official legal sources
For the authoritative text and current Central Government materials, refer to India Code and the Department of Land Resources under the Ministry of Rural Development. For a particular acquisition, applicable State legislation, rules, notifications and official acquisition records should also be checked.
Note: This article provides a general explanation of the Central Act. State amendments, rules and acquisition-specific orders may affect the procedure and entitlements in an individual case.
Updated: October 2026