A betel-vine grower in Nuagaon village glances at his vineyard minutes before it was pulled down for the Posco steel mill project near Paradip. Telegraph picture

Paradip, May 27: The five year old anti-Posco movement received a major setback today with the suspension of Dhinkia sarpanch, Sisir Mohapatra, even as land acquisition for the 12-million tonne steel plant continued unhindered at the project site.

Mohapatra, who also happens to be the secretary of Posco Pratirodh Sangram Samiti (PPSS), an outfit agitating against the project, was placed under suspension on charges of convening palli sabha illegally and diverting panchayat funds.

Mohapatra’s suspension was on the cards after the Union environment ministry accorded clearance to the project last month following the state government’s categorical assertion that the palli sabha resolutions submitted to the ministry by the PPSS were illegal as these meetings were neither convened properly nor had the required quorum to adopt resolutions. Union environment minister, Jairam Ramesh had asked the state government to initiate action against Mohapatra.

The suspended sarpanch, on the other hand, threatened to move Orissa High Court challenging the legality of the order. “I have fallen victim to a conspiracy hatched by the state and the Centre. I will go to the high court,” said Mohapatra.

“I was served both the showcause and suspension notices dated May 24 and 26 late last evening. I received the showcause notice but refused to accept the suspension order. As is the practice under Gram Panchayat Act, a month’s time is given after the serving of showcause notice. The suspension order is issued following the showcause reply. But here this was not the case,” said Mohapatra.

Defending the government action, Jagatsinghpur collector, Narayan Chandra Jena said: “The sarpanch has been placed under suspension by the state panchayati raj department on charges on convening palli sabha in violation of Orissa Gram Panchayat Act. Besides he has been found guilty of unlawfully diverting the gram panchayat funds for a road project.”

Murlidhar Swain, the Ersama block development officer, said Mohapatra was found guilty of diverting Rs 60,000 from panchayat funds for a road project without approval of the panchayat.

The action against Mohapatra evoked mixed reaction in the project area. Leaders and supporters of United Action Committee (UAC), a pro-plant outfit, appeared happy.

“The sarpanch misused his power and has been sacked. He should be arrested as he has misused panchayat funds,” said Nirvaya Samantaray, general secretary, UAC.

Describing the action as illegal, PPSS chief Abhaya Sahu said that the people of Dhinkia would hold protest meetings and also resist the land acquisition work.

However, land acquisition work for the steel project, went ahead with 3.82 acres of forestland being acquired. The officials pulled down 41 betel vineyards and paid Rs 44lakh as compensation to the land losers in Nuagaon panchayat.

The exercise was peaceful. Niraj Pradhan, one of the land losers, said: “I received a cheque for Rs 2.93lakh. There was poor harvest in the vineyards during the past two to three years. So, I gave it away. I hope the company would employ my son in the steel mill in future.”

Since May 18, when the exercise resumed, 20.94 acres of betel vineyards in encroached forestland have been acquired by the government.