Paradip, July 21: Villagers who had given land for Posco project have started re-occupying the same with reports of the project being put on hold doing the rounds.

"We have received reports of people re-occupying the land acquired for the steel project. People had given their land for the project and they had been paid due compensation. So, reclaiming the land is illegal," said Erasama tehsildar Sarat Kumar Purohit.

"Legal action will be taken against those who have flouted the law. We are waiting for orders from higher ups," said Purohit.

The land acquired for the project is now owned by state-run Industrial Infrastructure Development Corporation. So, people are bereft of legal rights to reclaim the land, said Purohit.

Posco Pratirodh Sangram Samiti (PPSS), the outfit that had spearheaded movement against land acquisition for the mega steel project, has appealed to the villagers to re-occupy the land for cultivation purpose.

"Our fight against the Posco project is yet to end. Though the company has retreated from the project, people from whom land was forcibly acquired are yet to get back their plots. Without making further delay, the state government should return them to the owners. We will launch a movement if the government fails to act," said PPSS chief Abhaya Sahu.

Earlier, the police had registered 32 cases against residents who had encroached upon steel company's land. Criminal cases had been registered against the occupiers under provisions of IPC and Odisha Prevention of Land Encroachment Act, said Purohit. "The villagers of Polang, Nuagaon, Gobindpur and Noliasahi have reoccupied the land and started restructuring their betel vines. People here are left with little option for livelihood after the government razed their betel vines. In other areas too landowners have built vineyards for sustenance," spokesman of PPSS Prasant Paikray.

The state government had concluded acquisition of 2,700 acres for Posco project on July 3, 2013. Since then the project work has failed to make much headway. Construction of project boundary wall was stalled following protest by locals.

"I am putting up fence around the plot to grow betel vines. My land was taken away two years ago. I do not know the legal technicalities. What's the wrong in using a vacant land for cultivation?" said Satyananda Das, 65, whose 45 decimal stretch betel vineyard had been dismantled for Posco land acquisition exercise.