The Supreme Court of India has resolved a land dispute originating from the Portuguese colonial era, 78 years after India's independence. The case involved land rights in the Union Territory of Dadra and Nagar Haveli, formerly under Portuguese rule.

The dispute centered around the rescission of land grants initially provided by the Portuguese government to Indian citizens for agricultural purposes between 1923 and 1930. In 1974, the collector of Dadra and Nagar Haveli rescinded these grants, leading to a protracted legal battle between the government and the landowners' descendants.

A bench of Justices Surya Kant, Dipankar Datta, and N Kotiswar Singh upheld a Bombay High Court order, which had affirmed the government's right to reclaim the land. The Supreme Court emphasized that the government was not prevented from exercising its legislative, sovereign, or executive powers in this matter. The bench dismissed appeals against the High Court's decision.

The Supreme Court referenced the "Organic Structure of the Lands of Nagar Haveli" from September 22, 1919, as the governing law for determining land rights initially granted to the appellants. The court stated that any inquiry into the matter must adhere to the provisions outlined in this regulation.

The Supreme Court judges voiced their concern that, even after 78 years of independence, the court was still resolving disputes stemming from rights conferred by colonial powers who had exploited India's resources. Dadra and Nagar Haveli were liberated from Portuguese occupation in 1954 and officially integrated into India as a Union Territory in 1961.

The original grants by the Portuguese government gave inheritable possession rights over land in Dadra and Nagar Haveli for an indefinite period, subject to annual rent payments. Over time, the descendants of these landowners divided the land among themselves. In 1969, the Indian government rescinded the land allocations made by the Portuguese government, reverting the land to the administration. This decision was challenged in the Bombay High Court.

During the legal proceedings, the Dadra and Nagar Haveli Land Reforms Regulation of 1971 was introduced, stipulating that land allotted by the Portuguese government should have been cultivated regularly. The collector determined that the land in question was uncultivated and reclaimed it on April 30, 1974. The heirs of the original land recipients challenged this order in the trial court, which ruled in their favor in June 1978. The government then appealed to the High Court, which overturned the trial court's decision.