The embodiments disclosed herein relate to a method and system that provides an IP based Distributed Cellular Architecture which overlays low-power pico-BS infrastructure on the currently deployed high power macro-BS cells. The method exploits benefits of smaller 5 cell sizes, ad-hoc deployment and distributed routing to achieve an overall gain in throughput while reducing operational and maintenance costs. In this network, a user is associated with a pico-BS most of the time so it takes considerable load of the macro-BS allowing the system to serve more number of users. The 10 system is scalable with respect to traffic load and the architecture is completely packet switched, when the number of active users is less and the remaining users experience a higher throughput. The method increases the bandwidth efficiency compared to a circuit switched network and also proposes a Handoff management mechanism with zero packet loss and low latency.