Supreme Court Quashes Gujarat HC Order in Adani Ports Land Dispute

NEW DELHI / AHMEDABAD – The Supreme Court of India has quashed a Gujarat High Court directive that had ordered the state government to reclaim 108 hectares (266 acres) of grazing land from Adani Ports and Special Economic Zone Limited (APSEZ). The apex court, in its ruling on January 27, 2026, cited a violation of the principles of natural justice, noting that the company had not been given a fair opportunity to be heard before the High Court issued its reclamation order.

The court has now mandated a "status quo" on the land and directed the Gujarat government to hear APSEZ's objections afresh within two weeks, followed by a new review by the High Court within three months.

Roots of the "Gauchar" Dispute

The legal battle involves "gauchar" (grazing) land in Navinal village, near Mundra Port in Kutch. The dispute spans over two decades of industrial expansion versus community resource rights.

• 2005: The Gujarat government allotted 231 hectares of grazing land to APSEZ for the Mundra SEZ.
• 2011: Villagers filed a PIL, arguing the allotment left them with only 45 acres, insufficient for the village cattle.
• July 2024: The state government initially agreed to take back 108 hectares to appease local demands, leading to a High Court order that APSEZ subsequently challenged in the Supreme Court.

APSEZ’s Legal Defense

Represented by senior counsel, APSEZ argued that an abrupt resumption of land would cause "irreparable injury" to the SEZ's infrastructure.

• Infrastructure at Risk: Nearly 14 acres of the disputed land already house high-tension transmission towers, with 50 more towers planned to power the SEZ units.
• Economic Contribution: The company highlighted its investment of ₹23,586 crore in the Mundra SEZ and the employment of over 18,000 people.
• Compensation: APSEZ maintained that villagers had been compensated nearly 20 years ago with ₹37.39 lakh plus a 30% premium.