Last year, Reliance power had raised a whopping $3 billion via IPO and promised that it would set up a record number of power plants over the coming times. But the firm's aspirations were hugely hurt on Friday after the Allahabad High Court ordered the Uttar Pradesh Government to acquire the 2,250 acres of land which the firm had appointed for its Dadri power project, refusing to listen to any counter pleas.

As per the court's ruling, Part of the land, which has been kept aside for the proposed 7,480MW Dadri project by Reliance Power, might just have to be renegotiated. The landlords have been directed to return all the funds received from the company for their land, and then prepare for a hearing with the District Collector, with who lays the final decision.

The ruling was given by a division bench of Justices Ashok Bhushan and Sudhir Agarwal, who also said that the Government would now have to consider any objections that the farmers might have. The ruling, which has not been very well received by many parties involved with the project, is being used by rivals to create a negative impact on the firm, according to Reliance.

"It is surprising and shocking that our corporate rivals are, as usual, distorting the scope and effect of the judgment of the Hon'ble High Court and are spreading malicious and false information", said Reliance Power CEO JP Chalasani.