Land for the development and maintenance of National Highways (NH) is acquired under Section 3 of the National Highways (NHs) Act, 1956 and compensation in lieu of the acquired land is determined in accordance with the First Schedule of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement (RFCTLARR) Act, 2013. If the amount determined by the Competent Authority for Land Acquisition (CALA) is not acceptable to land owners then he/ she can file objection before the arbitrator. This information was given by the Union Minister for Road Transport and Highways, Shri Nitin Gadkari in a written reply in the Rajya Sabha.
The Central Government under Section 3G(5) of the NHs Act, 1956, usually appoint concerned state government officers of the rank of Divisional Commissioner/ Additional Divisional Commissioner/ District Magistrate/ Collector, as Arbitrator .
In terms of Section 3G(6) of the NHs Act, 1956, the provisions of the Arbitration and Conciliation Act, 1996 (26 of 1996) are applied to every arbitration under the NHs Act, 1956. The arbitration proceedings are therefore quasi-judicial in nature.