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Mahanadi Coal Fields Compensation Case

The Supreme Court directed Mahanadi Coal Fields Ltd. to comply with the Orissa High Court's order for determining and disbursing compensation to landowners whose lands were acquired for coal mining in 1988. A Claims Commission will report compensation within six months, and MCL must ensure compliance with rehabilitation plans for displaced families, with compensation to be paid within six months. The court emphasized fair redressal, including housing and employment opportunities for affected individuals.

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53 views2 pages

Mahanadi Coal Fields Compensation Case

The Supreme Court directed Mahanadi Coal Fields Ltd. to comply with the Orissa High Court's order for determining and disbursing compensation to landowners whose lands were acquired for coal mining in 1988. A Claims Commission will report compensation within six months, and MCL must ensure compliance with rehabilitation plans for displaced families, with compensation to be paid within six months. The court emphasized fair redressal, including housing and employment opportunities for affected individuals.

Uploaded by

rashisejwal6
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Court No.

- 11
Bench: HON'BLE MS. JUSTICE BELA M. TRIVEDI AND HON'BLE MR. JUSTICE
PRASANNA B. VARALE
Item no – 58

SLP (C) No. 59110/2024


Case Title- MAHANADI COAL FIELDSLTD. vs. MATHIAS ORAM

Case Details- the petitioner was aggrieved by an order of the Orissa High Court, wherein the
High Court directed the Central Government and petitioner to immediately proceed under
provisions of the Coal Bearing Areas (Acquisition and Development) Act, 1957 to determine
and disburse compensation payable to landowners as expeditiously as possible, preferably
within six months.
However, the Central Government issued the preliminary notification under Section 4(1) of
the CBA Act on 11.02.1987, conveying its intention to prospect for coal in village Gopalpur
and others district.

Facts- In this case, the landowners' lands, acquired in 1988 for coal mining, remain
uncompensated. A Claims Commission will report compensation within six months, with
MCL paying within two months after central government approval. All parties, including the
petitioners and central government, will assist in establishing the commission. This order,
agreed upon by all parties, ensures fair compensation distribution.

Court Observed- The Managing Director of MCL, personally or through a designated


officer, will ensure compliance with Supreme Court directions and Commission orders. A
notice from the District Collector’s office will invite objections to constructed housing. Those
not indicating a preference within a week will be presumed to accept the offered housing.
Basic health amenities will be provided as directed by the Court. Authorities are encouraged
to allow displaced individuals to purchase land on fair terms if desired. Rehabilitation will be
provided only to those rendered destitute due to loss of residence or livelihood as a result of
land acquisition, ensuring fair redressal.
Held by Court- The Court held that the amended R&R Policy 2006 (2013 version) applies,
ensuring displaced families benefit. Employment accepted earlier is final, but those
uninterested may opt for a one-time monetary payment under the 2006 policy. MCL and the
State must prepare rehabilitation plans in consultation with displaced owners. Of 2791
families, 1177 received resettlement plots; 1614 remain. The Collector will conduct hearings
and finalize plots with three nodal officers, completing resettlement within nine months and
plot development within 15 months. Facilities must align with the R&R Act, 2013, within
three years. Compensation must be paid within six months, with a ₹25 lakh rehabilitation
package and employment offers provided within a year. Occupied lands must be vacated
post-compensation.

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