The Supreme Court on Monday refused to stay the construction work of the Sundilla reservoir, being done as part of the Telangana government's multi-purpose Kaleswaram lift irrigation project.
This comes as a major relief to the state, which was fighting a special leave petition by farmers from Goliwada village in Telangana's Peddapalli district.
According to reports, the state's counsel argued that the government had already deposited the compensation amount and distributed it to most of the land owners.
Therefore, the state contended that the work could not be stalled.
While refusing to stay the works, the apex court reportedly advised the petitioners to submit any objections they had, with regard to the compensation offered by the government for their lands.
Reports add that another petition moved by the farmers of Kaleswaram is also pending, which will be heard by the Supreme Court in the first week of June.
In April this year, tension prevailed at Goliwada village, after local authorities visited the site with construction material, to build a pump house in the area, across river Godavari.
Locals claimed that the construction continued despite them obtaining a stay order, and also alleged that they were not provided adequate relief and rehabilitation for their land.
"The state is blatantly violating and disobeying orders of the courts against the dispossession of landowners by forcibly entering and destroying patta lands, with absolutely no mandatory environmental, forest or other clearances," Rachna Reddy Bollu, the advocate fighting for the rights of farmers, had told Economic Times at the time.
However, Collector AS Alagu Varshini spoke to The Hindu and said oustees were losing only their land and not shelter, and hence they would not be rehabilitated in an R&R colony.
Following this, the farmers had moved the High Court, which also refused to stay the construction work.
Asking the government to go ahead with construction work, the Supreme Court said that the case will come up for hearing again in July.