"The petitioners [villagers] claim to have given up their land in favour of IDCO [Odisha government entity for land acquisition] on the strength of MOU signed with a private company [Lanco] for establishing a plant. It is their grievance that the concerned company has since resiled from its commitment made in the MOU," Judge Sashikanta Mishra wrote in the order.
"As such, the petitioners have submitted representation to the Collector with prayer to resume the land on the ground of violation
of the MOU," he wrote.
"Considering the fact that the matter is still pending with the Collector, the writ application is disposed of directing him to consider the grievance of the petitioners in accordance with law after granting opportunity of hearing to all stakeholders and take an informed decision in the matter within one month from today [28.01.2026]," the order said.
"It goes without saying that if the Collector so feels, he may also consult the RDC [Revenue Divisional Commissioner] of the division in the matter. The parties may also move the Collector pending disposal of the representation for passing appropriate interim directions regarding possession, if so advised," the order added.
Orissa High Court Advocate Lalitendu Mishra who appeared in matter on behalf of few land loser villagers of Kharagprasad & Kurunti of Odapada Block, Dhenkanal district
said, "The Hon’ble High Court after hearing both parties and the lawyers, has passed this order directing the Collector- Cum -District Magistrate, Dhenkanal to act upon within one month."
In their petition the villagers, who are claiming back their about 900 acres land said they had given their lands for the purpose of industrial development by Lanco about 15 years back at an average price of ₹6 lakh per acre.
Since Lanco could not build or run the plant due to paucity of financial resources, the land as per law, should have come back to the farmers after 5 years if the land was not used for the purpose it was acquired.
They said they had made several representations to the district collector over the past years for resumption of land which is still pending.
In a letter to the Collector the villagers said, "Lanco had assured to provide employment to the land losers. However, after acquisition of land several issues arose between the villagers and Lanco regarding employment and compensation for which several petitions were filed before your good office for proper adjudication of the issue."
They said Lanco was declared insolvent by
NCLT, Hyderabad and accordingly Corporate Insolvency Resolution Process
commenced against the company and one Sanjay Gupta was declared as Resolution Professional (RP).
Stating that several meetings were held with the Collector in this regard in 2021 in the presence of MP, MLA, Superintendent of Police, Dhenkanal and others, they said at those meetings RP Mr Gupta had categorically admitted regarding the existence of genuine claim of the land losers and had assured that he would take necessary steps to settle the claims of the villagers.
"However, since 2021 to till date Mr Gupta [preferred to] remain silent over the matter and ignored all our genuine grievances," they said.
"It is humbly submitted that, the land acquired by Lanco was under land acquisition act and change of nature of such lands is subject to the provisions of said act," they said in the letter.
"While acquisition of lands Lanco had assured to pay fair compensation and employment to the land losers but though it has acquired the lands in the year 2008 it has failed to make payment towards compensation to the land losers till its declaration as insolvent," they mentioned in the letter.
"Since Lanco plant was never functional,
the land should have been returned to the original owners. It also appears that a high-level fraud has been committed upon us," they added.
"It is pertinent to mention here that, initially the villagers had sold their land for the purpose of industrial development by Lanco and since presently Lanco is in no position to run its power plant, we pray your good office to direct RP Sanjay Gupta to hand over our lands as earliest as possible," they wrote.
HC directs District Collector to consider return of Lanco failed project land to Odisha villagers
Digital Desk
"The petitioners claim to have given up their land in favour of IDCO on the strength of MOU signed with a private company for establishing a plant. It is their grievance that the concerned company has since resiled from its commitment made in the MOU," Judge Sashikanta Mishra wrote in the order.
"As such, the petitioners have submitted representation to the Collector with prayer to resume the land on the ground of violation
of the MOU," he wrote.
"Considering the fact that the matter is still pending with the Collector, the writ application is disposed of directing him to consider the grievance of the petitioners in accordance with law after granting opportunity of hearing to all stakeholders and take an informed decision in the matter within one month from today ," the order said.
"It goes without saying that if the Collector so feels, he may also consult the RDC of the division in the matter. The parties may also move the Collector pending disposal of the representation for passing appropriate interim directions regarding possession, if so advised," the order added.
Orissa High Court Advocate Lalitendu Mishra who appeared in matter on behalf of few land loser villagers of Kharagprasad & Kurunti of Odapada Block, Dhenkanal district
said, "The Hon’ble High Court after hearing both parties and the lawyers, has passed this order directing the Collector- Cum -District Magistrate, Dhenkanal to act upon within one month."
In their petition the villagers, who are claiming back their about 900 acres land said they had given their lands for the purpose of industrial development by Lanco about 15 years back at an average price of ₹6 lakh per acre.
Since Lanco could not build or run the plant due to paucity of financial resources, the land as per law, should have come back to the farmers after 5 years if the land was not used for the purpose it was acquired.
They said they had made several representations to the district collector over the past years for resumption of land which is still pending.
In a letter to the Collector the villagers said, "Lanco had assured to provide employment to the land losers. However, after acquisition of land several issues arose between the villagers and Lanco regarding employment and compensation for which several petitions were filed before your good office for proper adjudication of the issue."
They said Lanco was declared insolvent by
NCLT, Hyderabad and accordingly Corporate Insolvency Resolution Process
commenced against the company and one Sanjay Gupta was declared as Resolution Professional (RP).
Stating that several meetings were held with the Collector in this regard in 2021 in the presence of MP, MLA, Superintendent of Police, Dhenkanal and others, they said at those meetings RP Mr Gupta had categorically admitted regarding the existence of genuine claim of the land losers and had assured that he would take necessary steps to settle the claims of the villagers.
"However, since 2021 to till date Mr Gupta remain silent over the matter and ignored all our genuine grievances," they said.
"It is humbly submitted that, the land acquired by Lanco was under land acquisition act and change of nature of such lands is subject to the provisions of said act," they said in the letter.
"While acquisition of lands Lanco had assured to pay fair compensation and employment to the land losers but though it has acquired the lands in the year 2008 it has failed to make payment towards compensation to the land losers till its declaration as insolvent," they mentioned in the letter.
"Since Lanco plant was never functional,
the land should have been returned to the original owners. It also appears that a high-level fraud has been committed upon us," they added.
"It is pertinent to mention here that, initially the villagers had sold their land for the purpose of industrial development by Lanco and since presently Lanco is in no position to run its power plant, we pray your good office to direct RP Sanjay Gupta to hand over our lands as earliest as possible," they wrote.
