As per the land acquisition act, if the land acquired and the compensation is paid then the land owner is divested of his title.
Section 11(A) of the land acquisition act, 1894, says that the Collector shall make an award under Section 11 within a period of two years from the date of publication of the declaration and if no award is made within that period, the entire proceedings for the acquisition of the land lapses.
48-B. Transfer of land to original owner in certain cases.-Where the Government are satisfied that the land vest in the Government under this Act is not required for the purpose for which it was acquired, or for any other public purpose, the Government may transfer such land to the original owner who is willing to repay the amount paid to him under this Act for the acquisition of such land inclusive of the amount referred to in sub-section (A-1) and (2) of Section 23, if any, paid under this Act."
A reading of the above provision would reveal that for invoking Section 48-B of the Land Acquisition Act.
(i) The Government should be satisfied that the land vested with it under the Act is not required for the purpose for which it was acquired or for any other public purpose.
(ii) In that event, the Government may transfer such land to the original owner, who is willing to repay the amount paid to him for the acquisition.
Only after subjective satisfaction when that the land is not required for the purpose, the Government may transfer. It is not mandatory / obligatory on the part of the Government to transfer such land and it is evident by employment of word "may" in the said Section.