Cuttack, Aug. 9: Orissa High Court today reserved judgment on a petition seeking quashing of the land acquisition proceedings undertaken for the Posco steel plant proposed to be set up at Paradip in Jagatsinghpur district.

Nishakar Khatua and five other villagers of the Posco project area had challenged the land acquisition proceedings undertaken by Orissa Industrial Infrastructure Development Corporation Ltd (IIDCO) at Dhinkia, Govindpur, Bhuyanpal, Polanga, Nolia Sahi, Bayanala Kandha and Nuagaon.

The two-judge bench of Chief Justice V. Gopala Gowda and Justice B.N. Mohapatra reserved judgment after hearing arguments from all sides on the land acquisition proceedings.

The petitioners had questioned its legality alleging that the Orissa government had issued notification under Section IV of the Land Acquisition Act for undertaking acquisition for a “public purpose” and at “government expense” when the entire acquisition of land is apparently for a private limited company.

The Orissa government had countered that the land acquisition process undertaken for the proposed 12-million-tonne Posco steel plant was “for a public purpose and not for a private company”.

The land has been acquired for IDCO for public purpose for establishment of industries under the Industrial Infrastructural Development Act, 1980, Industries (Facilitation) Act, 2004, and the Land Acquisition Act, 1894, the Orissa government said.

Posco had contended that the project is a development work of great magnitude beneficial for Orissa and its people and the country and stalling or discontinuing by virtue of any interim order would prejudice the cause which is for a public purpose and the company will suffer irreparable loss and injury.

The six villagers of Govindpur-Dhinkia-Nuagaon under Kujang police station area had also filed a writ petition for quashing of the forest clearance granted by the Union ministry of environment and forests for the proposed Posco steel plant.

The two-judge bench had reserved judgment on it on July 20.