The Supreme Court has set aside a Gujarat government order directing recovery of 108 hectares of gauchar (grazing) land allotted to Adani Ports and Special Economic Zone Ltd in Mundra, holding that the process was vitiated by a clear violation of the principles of natural justice.
A bench of justices JK Maheshwari and Atul Chandurkar ruled that the state’s July 4, 2024 order resuming the land, as well as the Gujarat High Court’s subsequent directions to implement that decision, were passed without granting an opportunity of hearing to the affected allottee.
“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,” held the court. The detailed order following court proceedings on January 27 was released last week.
Senior advocate Mukul Rohatgi appeared for Adani Ports, while Solicitor General Tushar Mehta represented the Gujarat government.
The controversy traces back to a 2011 public interest litigation (PIL) filed before the Gujarat High Court challenging the allocation and sale of gauchar land in Village Navinal in Mundra Taluka, Kutch district.
The PIL sought quashing of the June 27, 2005 decision of the Gujarat Revenue Department and the Collector’s July 15, 2005 order allocating approximately 231 acres of gauchar land to private entities connected with the Mundra Port project. It also sought restoration of the land to the Navinal gram panchayat or provision of alternative grazing land in view of the 18th Animal Survey of Gujarat (2007-08).
Further prayers included restraining developmental activities such as filling of creeks, dredging and removal of mangroves in the Mundra Port and special economic zone area pending environmental clearances.
The high court had initially disposed of the PIL in 2014 with directions for demarcation of gauchar land. However, upon a recall application by the state, the petition was restored.
During the pendency of proceedings, the Gujarat government passed an order on July 4, 2024 resuming a total area of 108 hectares and 22 ares from Adani Ports. The Supreme Court noted that this resumption was purportedly in pursuance of oral directions issued during the high court proceedings.
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The high court, in its impugned order, directed that the process of resumption be carried out in terms of the state’s July 4, 2024 order.
However, the Supreme Court found that neither at the stage of the state government’s decision nor during the high court’s directions was the appellant company afforded an opportunity of hearing.
The bench recorded that the appellant had not been heard by the state while passing the resumption order, and similarly had not been granted due opportunity before the high court issued consequential directions. The bench further noted that the high court had not adjudicated the claims raised in the PIL on merits but had effectively directed implementation of the state’s resumption decision.
The appeal had been pending before the Supreme Court for over one-and-a-half years, during which the operation of the high court’s order had been stayed. In view of the lapse, the bench quashed the July 4, 2024 resumption order but granted liberty to the state government to pass a fresh decision after following due process.
“It is needless to say that the parties shall exchange their objection/pleadings within six weeks. The state government is directed to afford an opportunity to the parties and decide the issue of resumption as expeditiously as possible afresh,” the court directed.
The court further ordered that the 2011 PIL before the Gujarat High Court shall be treated as disposed of. However, it clarified that once the state government passes a fresh order after hearing all stakeholders, the parties would be at liberty to pursue remedies as permissible in law.
Challenging the Gujarat government’s land reclamation, Adani had argued in its appeal that the high court could not direct enforcement of an “inherently illegal order” issued in violation of natural justice, especially in a 13-year-old PIL seeking to revoke a paid land allotment from over two decades ago.
The company noted it had invested over ₹23,586 crore by 2011 following the sale, while employing 2,284 directly and 15,921 indirectly at the SEZ. Adani stressed that its “vested and statutory rights”, built over 20 years, cannot be summarily disturbed.
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