Parandur airport project: What happens now to the land acquired? | Explained

The story so far: Following the announcement by Tamil Nadu Chief Minister C. Joseph Vijay on Monday (August 24, 2026) that his Government had decided to drop the ₹27,400 crore greenfield airport project in Parandur in Kancheepuram district, public curiosity has turned to the fate of lands acquired for the project. On Tuesday, Industries Minister S. Keerthana told the Assembly that alternative projects would be implemented using the acquired lands.

What triggered the decision?

Ever since Parandur, around 70 km from Chennai, was cleared by the Union Government in August 2022 for the proposed airport, sections of local villagers and farmers there have been in protest mode. Apart from likely displacement, they opposed the project citing possible adverse effects on the environment, given that the site is replete with waterbodies.

In January 2025, Mr. Vijay, as leader of the Tamilaga Vettri Kazhagam, visited the village and expressed solidarity with the protesters — regarded as his first public outreach programme after entering politics. After he became Chief Minister in May this year, execution of the project came to a halt. Now, a formal announcement has been made scrapping it.

How much land has been acquired?

According to Law and Energy Resources Minister C.T.R. Nirmal Kumar, the total required extent of land is 5,846 acres. Of this, 1,972 acres belong to the Government, including 1,558 acres spread over waterbodies.

Private patta lands therefore account for 3,874 acres, of which 1,802 acres — a little less than 50% — have been acquired. The acquisition has been carried out using provisions of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013.

What options does a State have to pull out of a project?

The 2013 Act has provisions (Section 93) similar to those of its precursor, the Land Acquisition Act, 1894 (Section 48). The section allows the appropriate government — the State Government, in this context — to withdraw from acquiring any land whose possession has not been taken, implying that no award has been passed.

“The District Collector shall determine the amount of compensation due for the damage suffered by the owner in consequence of the notice or of any proceedings thereunder, and shall pay such amount to the person interested, together with all costs reasonably incurred by him in the prosecution of the proceedings under this Act relating to the said land,” states Section 93(2).

Section 101 of the 2013 law deals with the return of unutilised land: “when any land acquired under this Act remains unutilised for a period of five years from the date of taking over the possession, the same shall be returned to the original owner or owners or their legal heirs, as the case may be, or to the Land Bank of the appropriate Government by reversion in the manner as may be prescribed by the appropriate Government.”

The Government can even sell undeveloped land to any person under Section 102. In such a case, 40% of the appreciated land value is shared among the persons from whom the land was acquired, or their heirs, in proportion to the value at which it was acquired — within five years of acquisition.

In the Parandur case, the Government has not taken possession of the acquired lands, though it has transferred ownership to itself, through the State Industries Department.

What happens when a government reverses course mid-acquisition?

A former Indian Administrative Service (IAS) official with expertise in land acquisition matters says that if the Government has taken possession of acquired land, it can use it for a similar or any other public purpose.

If it has issued only an award and paid compensation, but not taken possession, it can re-convey the land to the original owners, subject to recovering the compensation paid, with interest. If only acquisition proceedings have been initiated, with no award passed, the Government can cancel the entire proceedings through an executive order.

Has Tamil Nadu returned land before over a shelved project?

In June 2022, the DMK Government decided to drop the 1,600-MW Jayankondam integrated lignite mining and power generation project, and to return about 8,373 acres acquired in the mid-1990s to the former owners, without recovering the compensation already paid.

The Tamil Nadu Housing Board (TNHB) has a track record of not utilising the land it acquires. The Government has received representations from affected persons that since the Board has not used certain lands for years, these should be returned to the original owners.

Between October and December 2024, the TNHB released about 2,500 acres for which awards had not been passed under the 1894 Act. Where awards have been passed, nearly 5,706 acres acquired by the Housing Board either fall under the category of possession not having been taken, or of having been encroached upon. The Board acquired land only up to 2010, and only under the 1894 Act.

In January 2025, the previous regime formed a two-member panel of former IAS officials, including former Tiruvallur Collector V. Palanikumar, to examine the matter. The panel submitted its report in June 2026, and it may offer suggestions relevant to the situation the Government now faces in Parandur.

Published – August 26, 2026 11:56 am IST