Bhubaneswar 21st January : In a matter of grave public interest that raises serious questions about investor protection, regulatory oversight, and justice for marginalised farmers, thousands of villagers from Khadagprasad and Khurunti villages in Odisha’s Dhenkanal district have approached the Securities and Exchange Board of India (SEBI) seeking urgent intervention into alleged large scale land transfer irregularities involving reputed listed company JSW Steel Ltd, bankrupt Lanco Group, and one Saffron Resources Pvt. Ltd. which has has no income for past several years.
The villagers have warned that the case has far reaching implications not only for dispossessed farmers but also for investor confidence and the credibility of India’s capital markets.
The representation has been submitted by Shri Narendra Kumar Sahoo, Vice President of Anchalika Silpanchala Khyatigrasta Prajasangha and an elected representative of the original land owning farmers. He states that nearly 900 to 1,000 acres of fertile agricultural land belonging to thousands of poor villagers has been systematically diverted, grossly undervalued and transferred through what appears to be a structured transaction that bypasses land return laws, ignores farmers’ rights, and results in unjust enrichment at the cost of villagers and the public exchequer.
Between 2008 and 2010, the Odisha Industrial Infrastructure Development Corporation (IDCO) acquired approximately 1,000 acres of agricultural land from villagers of Khadagprasad and Khurunti for a proposed 1,320 MW supercritical coal-based thermal power plant by Hyderabad based Lanco Group. Farmers were paid a paltry compensation ranging between ₹3 lakh and ₹6 lakh per acre based on promises of permanent employment, business opportunities and long-term economic security. Trusting these assurances, poor farmers surrendered their ancestral land, which was their sole source of livelihood.
Construction activity began, and many villagers invested their savings to become contractors, raw material suppliers and transporters for the project. However, despite partial construction, the project never became operational. Lanco later went bankrupt and approached the National Company Law Tribunal (NCLT), Hyderabad, for liquidation. The project was abandoned, villagers were left jobless, and local contractors and suppliers were burdened with massive unpaid dues running into hundreds of crores. Despite assurances given in the presence of district authorities, Lanco representatives and the official liquidator, no relief ever materialised.
Under Section 101 of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, any land remaining unutilised for five years must be returned to the original landowners or their legal heirs. Despite more than a decade of non utilisation and repeated representations by villagers, the land was never restored. Instead, in financial year 2023–24, the NCLT approved the transfer of this land to Saffron Resources Pvt. Ltd. at a shockingly undervalued rate of approximately ₹10 lakh per acre, amounting to around ₹92 crore in total consideration, even as comparable industrial land in the same region was being transacted at rates ranging from ₹80 lakh to ₹1 crore per acre.
At no stage were the affected villagers, IDCO, or the Odisha State Government taken into confidence. There appears to have been no transparent benchmarking or independent valuation exercise, leading villagers to believe that the transaction was engineered to suppress land value and deprive them of their lawful rights. Soon thereafter, JSW Group allegedly acquired or merged with Saffron Resources Pvt. Ltd., thereby gaining indirect control over nearly 900 acres of prime industrial land.
Public disclosures and filings reportedly value the same land at nearly ₹680 crore post merger, exposing a massive valuation arbitrage within a short span of time. Villagers allege that this sequence strongly suggests a sham transaction structure designed to bypass land return laws, misrepresent asset values, mislead investors, and facilitate unjust enrichment. Such actions, if proven, strike at the very heart of corporate governance and market transparency.
The transaction has allegedly caused enormous losses to the public exchequer and the local economy. The Odisha State Government is believed to have lost approximately ₹56 crore in stamp duty, while the Central Government has allegedly suffered a capital gains tax loss of nearly ₹200 crore. In addition, local contractors, workers, suppliers and transporters are owed an estimated ₹250 to ₹300 crore, which remains unpaid since the collapse of the Lanco project.
Beyond financial and regulatory concerns, villagers have expressed grave environmental fears. The Dhenkanal region is already critically polluted, with air quality levels frequently exceeding an AQI of 400. The Brahmani River has effectively become a dumping ground for industrial waste, and the area includes elephant corridors and ecologically sensitive zones. Any fresh industrial activity on the same land would irreversibly damage public health, biodiversity and environmental stability across two districts.
In their appeal, the villagers have urged SEBI to investigate disclosures, filings and valuation statements made by JSW Steel with BSE and NSE in relation to Saffron Resources, to examine whether the transaction constitutes misrepresentation, regulatory arbitrage, fraud or investor deception, and to coordinate with NSE, the Income Tax Department, IDCO and state revenue authorities to uncover the full extent of statutory and financial violations. They have also sought review, suspension or reversal of the transaction and demanded that either the land be returned to the original farmers or fair market compensation with appreciation be paid.
“What was projected as industrial development has resulted in dispossession, distress and denial of lawful rights for more than fifteen years,” said Shri Narendra Kumar Sahoo. “This case is not merely about farmers’ land. It is a test of India’s regulatory institutions, investor protection framework and the rule of law. If such transactions go unchecked, it will severely erode public faith in both markets and governance.”
Copies of the appeal have been sent to the Hon’ble Prime Minister of India, the Union Finance Minister, the Minister of Corporate Affairs, the leadership of NSE and BSE, the Chief Vigilance Commissioner of India, and the Chief Secretary of Odisha. The farmers of Dhenkanal say they now place their final hope in constitutional and regulatory authorities to intervene decisively and protect citizens, investors and the public exchequer from what they allege is a deeply unjust and exploitative transaction.
