Reserved forest status requires completion of the statutory process; a proposal notification alone cannot justify rejection of environmental clearance.

A proposal notification under Section 4 of the Orissa Forest Act, 1972 does not by itself create a reserved forest; the statutory process must be completed through proclamation by the Forest Settlement Officer, inquiry and settlement of claims, and the final reservation notification under Section 21. Because those subsequent steps had not been completed, the quarry land could not be treated as reserved forest merely on the basis of the proposal notification or internal correspondence. The rejection of environmental clearance on that footing was therefore unsustainable and was quashed, with directions to proceed in accordance with law.

---

---

Issues: Whether the rejection of environmental clearance for the stone quarry, based on the view that the quarry area fell within a protected reserve forest, was sustainable when the statutory procedure for reservation of forest land had not been completed.

Analysis: The dispute turned on whether the quarry land had legally acquired the status of reserved forest. Under the Orissa Forest Act, 1972, a mere notification proposing constitution of reserved forest under Section 4 does not by itself complete the reservation process. The statutory scheme requires proclamation by the Forest Settlement Officer under Section 6, inquiry and disposal of claims under Section 7 and allied provisions, and finally a notification declaring the forest reserved under Section 21. The record showed that while a notification proposing reserve forest had been issued, the subsequent statutory steps had not been completed. In that situation, the authorities could not treat the land as reserved forest merely on the basis of the proposal notification and internal correspondence.

Conclusion: The rejection of environmental clearance and the communication treating the quarry land as falling within the reserved forest area were unsustainable and liable to be quashed. The writ petition was allowed and the authorities were directed to proceed in accordance with law.

---