New Delhi: In a massive blow to the Anil Agarwal Foundation, the Supreme Court upheld the 2010 order of Orissa High Court , quashing the proceedings initiated by the state government to acquire 6,000 acres for the proposed Vedanta University along Puri-Konark marine road in Odisha.
Dismissing the appeal filed by Anil Agarwal Foundation and the state government, a bench comprising Justices MR Shah and Krishna Murari noted that it involved displacement of approximately 30,000 people, and that the entire acquisition process was “vitiated by favouritism.” It further said that these were agricultural lands.
“…the lands to be acquired are agricultural lands belonging to 6,000 families and their only source of livelihood is on the agricultural lands, which cannot be compensated in terms of money. Therefore, the proposal made now has to be rejected outright,” the Bench said.
The top court also accused the state government of giving undue favour to Vedanta and that the entire acquisition process was “vitiated by favouritism.”
“It is not appreciable why the Government offered such an undue favour in favour of one trust/ company. Thus, the entire acquisition proceedings and the benefits, which were proposed by the State Government were vitiated by favouritism and violative of Article 14 of the Constitution of India”, the Court observed in this regard.
The bench also took note of the fact that initially 15,000 acres were proposed to be acquired and later reduced to 3,837 acres which meant the proposal was for exaggerated demand while wondering as to how the maintenance of rivers could be handed over to the beneficiary company, violating the Doctrine of Public Trust. “The most important aspect, which is required to be considered is the non-application of mind by the state government on environmental aspects and passing of two rivers from the acquired land in question.”
The SC imposed a cost of Rs 5 lakh to be deposited by Anil Agarwal Foundation with the court registrar within a period of six weeks.
