New Delhi: The Supreme Court of India on Wednesday struck down a Gujarat government order that directed the recovery of 108 hectares of gauchar (grazing) land previously allotted to Adani Ports and Special Economic Zone Ltd near Mundra in Kutch district, citing a violation of the principles of natural justice.
No hearing before decision, rules apex court
The top court held that both the state government’s July 4, 2024 order to resume the land and the subsequent directions of the Gujarat High Court were passed without giving an opportunity of hearing to the affected company, a fundamental requirement under natural justice.
“The order dated 04.07.2024 passed by the state which is in violation of the principles of natural justice is liable to be quashed with liberty to pass afresh order,” the bench said in its detailed judgment released last week, according to a Hindustan Times report.
Senior advocate Mukul Rohatgi appeared for Adani Ports, while Solicitor General Tushar Mehta represented the Gujarat government in the proceedings.
Long legal battle since 2011
The case dates back to a 2011 public interest litigation (PIL) filed in the Gujarat High Court challenging the allocation and sale of gauchar land in Village Navinal of Mundra Taluka. Petitioners sought to quash the June 27, 2005 decision of the Gujarat Revenue Department and a July 15, 2005 collector’s order that allotted roughly 231 acres of grazing land to entities connected with the Mundra port project. They also sought restoration of the land to the Na
vinal gram panchayat or alternative grazing land for the community.
In addition to land restoration, the PIL had requested a ban on developmental activity such as creek filling, dredging and mangrove removal within the Mundra port and SEZ areas unless environmental clearances were obtained.
High Court, then Supreme Court
The High Court initially disposed of the PIL in 2014, directing demarcation of grazing land. However, after a recall application by the state, the petition was restored. During the ongoing proceedings, in July 2024 the Gujarat government issued an order resuming 108 hectares of land from Adani Ports — said to be based on oral directions from court hearings. The High Court then directed implementation of that order.
The Supreme Court found that Adani Ports was never heard before these decisions, nor were its arguments considered. The High Court, the apex court noted, did not adjudicate the original claims in the PIL on merit and instead directed enforcement of the state’s resumption decision.
With the resumption order quashed, the Supreme Court allowed the Gujarat government to take a fresh decision after providing due process and hearing all stakeholders. The bench directed the parties to exchange objections and pleadings within six weeks and decide the issue expeditiously.
Although the 2011 PIL is treated as disposed of, the Supreme Court clarified that once a fresh order is passed by the state government, the affected parties are free to pursue remedies available under law.
Adani Ports, in its appeal, argued before the Supreme Court that the High Court could not enforce what it called an “inherently illegal order” issued in violation of natural justice, particularly in a petition related to revoking a paid land allotment from more than two decades ago. The company noted it had invested over ₹23,586 crore following the sale and provided employment to thousands — pointing to its vested statutory rights.