Supreme Court Overturns Gujarat High Court Ruling in Adani Ports Grazing Land Case

The apex court has intervened in a long‑running land dispute involving Adani Ports and Special Economic Zone Ltd, directing a fresh examination of the Gujarat High Court’s directive to return 108 hectares of grazing land to villagers, as per The Economic Times report. 

Supreme Court Intervention and Immediate Directions 

On January 27, 2026 the Supreme Court set aside the Gujarat High Court order that required state authorities to reclaim 108 hectares of “gauchar” land in Navinal village, Kachchh. The court observed that Adani Ports had not been given an opportunity to be heard before the High Court issued its directive.  

The apex court instructed the Gujarat government to consider the company’s objections within two weeks and allowed the High Court to rehear the matter in accordance with law. All parties have been directed to maintain the status quo on the land pending further orders. 

Background of the Grazing Land Dispute 

The controversy dates back to 2005 when 231 hectares of grazing land were allotted to Adani Ports for its Mundra SEZ. In 2011 villagers, led by Fakir Mamad Suleman Sameja, filed a public interest litigation after the company fenced the area, leaving only 45 acres for communal grazing.  

The state government, on July 5, 2024, announced its intention to reclaim 108 hectares and return it to the villagers. Adani Ports contested the move, arguing that the villagers had already received compensation of ₹37.39 lakh plus a 30% premium and that the company had invested ₹23,586 crore in the SEZ, creating employment for more than 18,000 people. 

Read More: Adani Group Stocks Gain After Clarification of US SEC Summons, States No Allegations Against Company! 

Key Points Raised by Adani Ports 

The company highlighted that 14 acres of the disputed land host high‑tension transmission towers, with an additional 50 towers planned to supply power to SEZ units.  

It warned that an abrupt reversal of the land allotment could cause irreparable injury to its operations and the broader industrial ecosystem. 

Legal History and Procedural Developments 

Earlier rulings in 2014 directed the state to measure and hand over an additional 387 hectares to the village panchayat. A contempt petition was filed in 2015 when the government failed to act, and the state later moved a review petition asserting that the total land involved was less than originally claimed.  

The Supreme Court’s recent order gives the High Court three months to deliver a fresh decision after considering the state’s response. 

Conclusion 

The Supreme Court’s decision pauses the reclamation of 108 hectares, ensuring that Adani Ports’ objections are examined before any further action. The case remains pending, with the High Court tasked to deliver a new ruling within the stipulated timeframe. 

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