The Supreme Court on Wednesday came down heavily on Odisha government for offering and giving ‘undue benefits’ and ‘undue largesse’ to Vedanta linked Anil Agrawal Foundation for its proposed Vedanta university in the State involving land acquisition, tax reliefs and other assistances like getting clearances from regulatory bodies like the UGC and others.

“From the material on record, it appears that undue benefits were proposed, in fact offered and given to the beneficiary company providing undue largesse,” said a bench of Justice MR Shah and Justice Krishna Murari in their judgment today while upholding the State High Court’s judgment.

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Speaking for the bench, Justice Shah said, “From the … detailed findings recorded by the High Court …, we are more than satisfied that the High Court has not committed any error and in fact the High Court was justified in setting aside the entire acquisition proceedings, which has been vitiated by non-compliance of the statutory provisions under the Act, 1894 and the Rules, 1963 and vitiated by mala fides and favouritism and is a clear case of the non-application of mind on relevant aspects. We are in complete agreement with the view taken by the High Court.”

Upholding the High Court judgment, the top court imposed a fine of Rs. Five lakhs on the petitioner Anil Agarwal Foundation which will be deposited with the Registrar of Supreme Court within six weeks, which in turn will be transferred to the Orissa State Legal Services Authority.

The top court took exception to the handing over the maintenance of two rivers – ‘Nuanai’ and ‘Nala’ – flowing through 6000 acres of acquired lands to the Anil Agrawal Foundation.

“The most important aspect, which is required to be considered is the non-application of mind by the State Government on environmental aspects … How the maintenance of the rivers etc. can be handed over to the beneficiary company. If the lands in question are continued to be acquired by the beneficiary company, the control of the rivers would be with the said private company, which would violate the Doctrine of Public Trust”, the court said, taking a dim view of the way the Odisha government has acted in the entire matter.

The court said that even requiring the beneficiary company to maintain the flow of above two rivers may also affect the residents of the locality at large.

Similarly on the wildlife Sanctuary, which is just across the road to the proposed university, the court said that the large-scale construction for the establishment of the proposed university as observed by the High Court will also “adversely affect the Wildlife Sanctuary, entire Ecosystem and the ecological environment in the locality”.

It further said, “Merely because the Balukhand Wildlife Sanctuary is separated from the proposed site by a highway – Puri-Konark Marine Drive, cannot be a ground to acquire the huge lands for the proposed university and as rightly observed by the High Court, the same will adversely affect the Wildlife Sanctuary and the entire Ecosystem and the ecological environment in the locality.”

The top court said that it is the duty of the State to protect the Wildlife Sanctuary and it may affect the entire Ecosystem and the ecological environment in the locality.

“It is also required to be noted that even the distance of the sea from the proposed Vedanta University is approximately 2000 meters.”, judgment noted.

Undue largesse, the court noted included total autonomy to Vedanta University and its authorities with regard to administration, admission, fee structure, curriculum and faculty selection; proposed university to have complete immunity from any reservation laws of the State Government; all assistance in getting regulatory approvals from UGC, AICTE etc.; the Government agreed to provide 4-lane road from Bhubaneswar city to the proposed site.

The agreement between the Odisha government and Anil Agrawal Foundation provides that the state government will make the land use/ zoning plan in the five km radius from the university boundary only after consultation with Vedanta.