Odisha villagers seek SEBI probe into JSW, Lanco and Saffron deal, warn of investor deception

In a matter raising serious concerns over investor protection, regulatory transparency and farmers’ rights, thousands of villagers from Khadagprasad and Khurunti villages in Odisha’s Dhenkanal district have approached the Securities and Exchange Board of India (SEBI), seeking an urgent investigation into alleged irregularities surrounding a large land transaction involving JSW Steel, the now-bankrupt Lanco Group, and Saffron Resources.

The representation was submitted by Narendra Kumar Sahoo, Vice President of Anchalika Silpanchala Khyatigrasta Prajasangha, on behalf of affected villagers. It alleges that nearly 900–1,000 acres of fertile agricultural land belonging to marginal and small farmers was systematically diverted, grossly undervalued, and transferred through a complex corporate and legal structure that bypassed statutory land return provisions and ignored farmers’ rights. Villagers have warned that the issue has far-reaching implications for investor confidence, market disclosures, and the credibility of India’s capital markets.

Talking to Bizz Buzz, the complaint on condition of anonymity said, “Between 2008 and 2010, the Odisha Industrial Infrastructure Development Corporation (IDCO) acquired around 1,000 acres of land from villagers for Lanco’s proposed 1,320 MW thermal power project.

Farmers were paid between Rs 3 lakh and Rs6 lakh per acre, allegedly based on assurances of permanent employment, regional development, and long-term economic security. Many families surrendered their only source of livelihood in expectation of industrial growth and stability.”

However, the project failed to take off and Lanco subsequently entered bankruptcy proceedings. Despite the land remaining unused for more than a decade, villagers allege it was never returned, even though applicable state laws require the restoration of unutilised acquired land after five years. The prolonged non-utilisation, they claim, led to irreversible livelihood losses, migration, and economic distress among farming households, he said.

In FY 2023–24, the National Company Law Tribunal (NCLT) approved the transfer of the land to Saffron Resources at an estimated valuation of approximately Rs10 lakh per acre, amounting to about Rs 92 crore in total. Villagers contend this valuation was far below prevailing market rates, which they say range between Rs80 lakh and Rs1 crore per acre for comparable land in the region.

They allege that the transaction resulted in significant losses to the public exchequer and unfair enrichment of private entities.

The representation further alleges that JSW Steel subsequently acquired or merged with Saffron Resources, thereby gaining indirect control over the land. Post-transaction, the land is reportedly valued at nearly Rs 680 crore, raising concerns over potential undervaluation, related-party transactions, and misrepresentation in corporate and market disclosures. Villagers have also flagged unpaid dues to local contractors and vendors from the earlier project phase.

Urging SEBI’s intervention, the villagers have sought a detailed probe into valuation practices, disclosure obligations, and regulatory compliance, and have demanded either the return of the land to original owners or fair compensation at current market rates.

“This is not just about farmers’ land—it is a test of India’s regulatory integrity and investor protection framework,” Sahoo said.