Orissa High Court puts status quo on BILT’s proposal to reclassify land use in Choudwar

The Orissa High Court has put a temporary halt to Ballarpur Industries Limited’s (BILT) proposal to reclassify the land use of its former paper mill located in Choudwar. This decision will remain effective until further discussions during the next court session.

Seeking an affidavit from the state government, the division bench of Acting Chief Justice Arindam Sinha and Justice MS Sahoo said, “State is to respond on petitioners’ contention that alienation for purpose of industry and the purpose lost would thereby render basis for the alienation removed.”

Judicial Intervention Following Public Petition

This intervention stems from a public interest litigation (PIL) filed by Ramesh Chandra Nayak and six other residents from Choudwar. The petitioners requested legal measures to stop the conversion of this land into parcels ready for sale, as well as demanding the reclamation of any government land currently under BILT's tenure.

The claimants have accused BILT of seeking a legal process known as mutation, intended to modify the land's official classification to facilitate its sale. Meanwhile, the Additional Government Advocate, Suman Pattanayak, stated in court that the matter is under review by the Law department and awaits an outcome.

“Government land was provided for the industry. When the purpose has long since been lost, the land should be resumed,” the petition contended.

Company’s Defence Amidst Insolvency

Countering these claims, BILT's legal representative, SK Acharya, noted that the company is undergoing insolvency proceedings. He further highlighted that an existing resolution plan, which addresses the interests in the land, has received approval, thereby legitimising the desired changes in land status.

The history of Choudwar paper mill dates back to its establishment by Titagarh Paper Mills. It later faced financial hardship, leading to its acquisition by BILT in 1994. The assets in question comprise over 600 acres in Choudwar and Angul, of which approximately 333.34 acres was provided by the government for the mill.

March 19 has been fixed as the next hearing on BILT’s ‘right to deal with the land for a different purpose’.