SC upholds Orissa HC’s order of quashing land acquisition proceedings for Vedanta’s varsity project

In a massive blow to the Anil Agarwal Foundation, the Supreme Court of India upheld an order of the Orissa High Court that had quashed land acquisition for its proposed university, which was initially requiring 15,000 acres of land along Puri-Konark marine road.

In a massive blow to the Anil Agarwal Foundation, the Supreme Court of India upheld an order of the Orissa High Court that had quashed land acquisition for its proposed university, which was initially requiring 15,000 acres of land along Puri-Konark marine road.

The Apex Court went on to observe that the proposal to acquire 15,000 acres of land was exaggerated demand and mala fide intention on the part of the company.

In 2006, the Vedanta Foundation proposed to come up with a university catering to 1,00,000 students. The university would have been built in a phased manner. It was submitted that in Phase I, colleges in the field of Medicine, Liberal Arts, Science and Technology, Agriculture and Food Processing and the Institute of Design would have been started. It would have a self-contained township.

Environment rights activists had opposed the acquisition of vast stretches of 15,000 acres of land near the coast saying it was disastrous move. Rights activists said more than 30,000 population would lose their livelihood permanently.

After the process of land acquisition started, Orissa HC allowed a public interest litigation which challenged the acquisition of land. On November 16, 2010, the Orissa HC passed an order quashing the grant of government land in favour of the beneficiary company under Rule 5 of the Government Land Settlement Rules with a direction to the State Government to resume the lands which were granted to the beneficiary company by way of lease. The HC had directed land owners to refund the amount received by them as compensation in respect of their lands. The company had challenged the HC order in Supreme Court.

Adjudicating the matter, a division bench of the Supreme Court comprising Justice M.R. Shah and Justice Krishna Murari observed, “it appears that undue benefits were proposed / in fact offered and given to the beneficiary company providing undue largesse.”

As per the MoU between Odisha Government and Anil Agarwal Foundation, the State government had promised to exempt all state levies, taxes, duties, works contract tax, stamp duty and entry tax on research and development equipment, educational aids, lab equipment and tools, and construction materials from the date of signing of the MoU. Besides, the proposed Vedanta University would have complete autonomy in regard to admission and reservation policy.