The Supreme Court has set aside a Gujarat High Court order that had directed the recovery of 108 hectares of village grazing (gauchar) land allotted to Adani Ports in Mundra. The top court said the decision was made without giving the allottee a proper opportunity to be heard.

A Bench of Justice JK Maheshwari and Justice Atul Chandurkar held that both the State’s decision to take back the land and the High Court’s directions based on it were legally flawed because they violated the principles of natural justice.
“In this view of the matter, we are inclined to set aside the order of the High Court,” the Court observed.

Facts:

The Supreme Court noted that the Gujarat High Court’s directions were based on a State resumption order dated July 4, 2024, which had ordered recovery of 108 hectares of gauchar land earlier allotted to Adani Ports. Since this resumption order was passed without hearing Adani, the High Court’s directions based on it could not stand on their own.

The Bench stated that when an administrative decision affects someone’s rights or interests, giving a prior opportunity of hearing is not optional but essential.

Instead of deciding whether the land allotment was valid, the Court asked the State authorities to reconsider the matter afresh, strictly in accordance with law.

The Court directed that:

• Adani Ports may file its objections within two weeks,

• A reasonable opportunity of hearing must be given to all concerned parties, and

• The status quo, as ordered earlier on July 10, 2024, will continue until the reconsideration process is completed.

• The Court also clarified that after the State passes a fresh order, the Gujarat High Court can independently continue hearing the pending public interest litigation.

Genesis of the Case:

The dispute goes back to 2005, when about 231 hectares of land classified as gauchar in Navinal village was allotted to Mundra Port, which was later acquired by Adani Ports and SEZ.

In 2010-11, fencing work on the land led to protests by local villagers. They approached the Gujarat High Court through a public interest litigation, claiming the allotment adversely harmed communities dependent on livestock.

In 2014, the High Court disposed of the PIL after the State assured that alternative grazing land would be provided. However, when the promised was not given, the State filed a recall application in 2015, saying that after measurement it could not allot the proposed land. The PIL was then restored.

On April 19, 2024, the High Court asked senior revenue officials to resolve the shortage of grazing land. Following this, the State decided to take back 108 hectares of the land allotted to Adani Ports and issued a resumption order on July 4, 2024. The High Court noted this decision the next day and directed further recovery steps.

Supreme Court’s Intervention:

Adani Ports challenged these directions in the Supreme Court, arguing that both the resumption order and the High Court’s directions were passed without giving it an opportunity to be heard.

The Supreme Court granted an interim stay on July 10, 2024, and has now formally set aside the High Court’s order, saying fair procedure must be followed even in matters involving public land.

Case Details - Adani Ports and Special Economic Zone v. State of Gujarat