SC quashes Gujarat govt order to reclaim grazing land from Adani SEZ

India’s Supreme Court has nullified  the Gujarat government’s decision to reclaim 108 hectares of grazing land from Adani Ports and Special Economic Zone Ltd (APSEZ), along with a related order of the Gujarat High Court, delivering significant relief to the Adani Group.

The dispute centred on grazing (gauchar) land in Navinal village of Mundra taluka in Kutch district, which had been allotted to APSEZ for the development of a Special Economic Zone nearly two decades ago. The state government’s move to take back part of the land, and the subsequent directions issued by the high court, were challenged by the Adani Group before the apex court.

In its final judgment, the Supreme Court declared the Gujarat government’s decision dated July 4, 2024, to reclaim the land, as well as the Gujarat High Court’s order of July 5, 2024, passed in recognition of that decision, to be null and void. As a result, all rights over the disputed gauchar land will continue to vest with Adani Ports and SEZ Ltd.

Earlier, on July 10, 2024, a bench comprising Justices B R Gavai and K V Vishwanath had granted an interim stay on the government’s decision to take back the land. After hearing detailed arguments from all parties, including APSEZ and the Gujarat government, the top court has now conclusively ruled in favour of the company.

According to the case records, on July 15, 2005, the Gujarat government had allotted approximately 9,34,829 square metres of grazing land in Navinal village to Adani Ports and SEZ Ltd for the development of an SEZ, upon payment of compensation fixed by the state. 

The land was subsequently notified as SEZ land by the Union Ministry of Commerce and Industry.

However, in 2011, the allotment of the grazing land to the Adani Group was challenged before the Gujarat High Court through a public interest litigation, which sought the cancellation of the allotment and the return of the land. The matter remained under consideration for several years.

Following observations and criticism by the high court, the Gujarat government, on July 4, 2024, decided to reclaim 108 hectares of grazing land from APSEZ and submitted an affidavit to this effect before the HC. 

Acting on this, the HC on July 5, 2024, directed the state to complete the process of reclaiming the land.

Aggrieved by this order, Adani Ports and SEZ Ltd approached the SC through a special leave petition, arguing that the state government had taken the decision to reclaim land allotted nearly 20 years earlier without issuing any notice to the company. The move was described as arbitrary, illegal and in violation of the principles of natural justice.

Accepting these submissions, the top court set aside both the state government’s decision and the HC’s order, bringing an end to the long-running dispute and providing major relief to the Adani Group.