Rourkela: A growing land mafia targeting railway properties in Rourkela has triggered concern among residents and authorities, amid allegations of illegal sales, encroachments and suspected collusion by railway employees. The issue has further deepened the city’s housing crisis and is hindering urban development too. Of late, the housing shortage in Rourkela and across Sundargarh district has worsened. While rich people are purchasing plots in upscale localities at premium rates, people belonging to economically weaker sections are turning to unutilised lands—particularly those owned by the Railways, the Forest department and Rourkela Steel Plant—for shelter.
Encroachments have surged across several railway-owned plots, especially in areas like Bandhamunda, where unauthorised structures have obstructed road construction projects. Similar encroachments are also affecting steel plants and forest lands, where planned infrastructure initiatives face repeated delays due to illegal settlements. Recently, multiple allegations have surfaced regarding the large-scale sale of railway land through illegal means. “Shockingly, some railway employees are suspected of facilitating these transactions,” said a source. Rourkela falls under the Mumbai–Howrah section of the South Eastern Railway, and unauthorised settlements along the tracks are allegedly being sold by long-time occupants at exorbitant prices before they disappear, leaving buyers stranded. As demand for affordable housing rises, land mafia networks have identified railway properties as lucrative targets. Despite numerous complaints, authorities have reportedly taken little concrete action. However, railway officials claim that stringent measures will be taken if formal complaints are received.
According to local sources, over 20 settlements—including Railway Colony, Malgodown, Gopabandhu Palli, Timber Colony, Durgapur Basti, Nehru Palli, Madhusudan Palli, Rajiv Basti, Indira Nagar and FCI Basti—are located on railway land. Many of these settlements have been occupied for decades.
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Typically, encroachers construct temporary shelters with tin or asbestos roofs, and later convert them into permanent homes using brick and mortar. Sikandar Alam, a resident of Malgodown area, alleged that railway land is being openly sold and that drug peddling is thriving in the region. “Many young people are falling prey to substance abuse. Authorities must take immediate action,” he said. Railways inspector of works Tuhinkant Satpathy confirmed that monitoring is underway. “We are identifying encroached zones near the railway lines as part of a redevelopment plan and working to reclaim the land. Eviction drives have already been carried out in areas such as Railway Colony and Malgodown,” he said. Satpathy added that no official complaints have been received linking railway employees to the illegal land sales. He, however, assured that stringent legal action would follow if such allegations are substantiated.