Section 80 of Land Acquisition Act 2013: Payment of Interest
Section 80 of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 provides statutory interest where compensation is not paid or deposited on or before possession of the acquired land is taken.
Interest at 9 percent per annum from the date possession is taken until payment or deposit.
Interest at 15 percent per annum on the compensation, or unpaid part, after expiry of one year from possession.
What Section 80 provides
Section 80 - Payment of interest
When compensation is not paid or deposited on or before taking possession of the land, the Collector must pay the amount awarded together with interest at 9 percent per annum from the time possession is taken until payment or deposit.
If the compensation, or any part of it, remains unpaid or undeposited for more than one year from the date possession is taken, the rate becomes 15 percent per annum from expiry of that one-year period on the amount that remains unpaid or undeposited.
Meaning and operation of Section 80
Collector
The Collector is the land acquisition authority responsible for making the award and performing the functions assigned under the 2013 Act. Section 80 places the obligation to pay statutory interest on the Collector when possession precedes payment or deposit of compensation.
Payment or deposit
The interest obligation is linked to whether compensation has been paid to the person entitled or deposited in accordance with the Act. Section 77 governs payment of compensation and circumstances in which the amount is deposited with the Authority.
Date from which interest runs
The statutory trigger is the taking of possession. If compensation has not been paid or deposited by that date, interest runs from the date possession is taken. The first-year rate is 9 percent per annum. After one year, the statutory rate is 15 percent per annum on the amount that remains unpaid or undeposited.
Practical timeline
On or before possession: if the compensation is paid or validly deposited, Section 80 interest does not arise merely because possession is taken.
Possession to completion of one year: where compensation remains unpaid or undeposited, interest is payable at 9 percent per annum.
After completion of one year: the rate becomes 15 percent per annum on the compensation or portion that remains unpaid or undeposited, and continues until payment or deposit.
Related provisions
Official legal resources
For the authoritative statutory text and current legal materials, refer to India Code, the Department of Land Resources, and the Supreme Court of India.