The party workers, led by state chief Partap Singh Bajwa, along with Indian Youth Congress Chief Amarinder Singh Warring started marching towards Punjab Legislative Assembly to gherao the House.
Police resorted to mild force initially to disperse the protesters but later used water canons to stop the workers to move any closer to the state Assembly, with barricades installed at places to halt their movements.
Congress workers, who were shouting slogans against the BJP-led government at the Centre and SAD-BJP led Punjab government, were adamant to lay a siege of the state Assembly despite prohibitory orders, police said here.
Several Congress leaders including Bajwa courted arrest against the Bill.
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Attacking the Modi led government at the Centre and SAD-BJP government in the state, Bajwa said the Land Acquisition Bill was against the interest of farming community and the party would not allow the NDA government to take any decision against the farmers' interest.
He said the state unit would start a 'Jail Bharo Andolan' against the "draconian law" in Punjab.
"We will soon take a decision to start Jail Bharo Andolan from Punjab against the Land Acquisition Bill and our leaders will court arrest against this law," Bajwa said, adding that the campaign would continue until the Land Acquisition Bill is rolled back by the Centre.
Meanwhile, a multi-layer barricading was done by the Chandigarh police to stop protesters from proceeding towards the state Assembly, which is about 7 km from Sector 25.
Several senior Congress leaders, including AICC General Secretary and party affairs in-charge for Punjab Shakeel Ahmad, former Punjab Chief Minsiter Rajinder Kaur Bhattal, CLP Leader Sunil Jakhar, MLAs Preneet Kaur, Lal Singh, Rana Gurjeet Singh and Rana Gurmeet Sodhi were also present.