Orissa government today said it would "examine" the High Court judgement that quashed the land acquisition procedure for the proposed Vedanta university along the Konark-Puri Marine Drive.

"We have not yet received a copy of the judgement. We will examine what needs to be done," Chief Minister Naveen Patnaik told reporters after the court pronunced its judgement.

Terming the state government notifications made for the land acquisition for the proposed university as illegal, a division bench comprising Chief Justice V Gopalgowda and Justice B P Das today directed the company to return the awarded land to the original owners.

Preparations were afoot for establishment of the proposed varsity by Anil Agarwal Foundation (AAF) at an investment of Rs 15,000 crore. A bill in this regard was also passed in the state assembly on July 31, 2009.

However, the Vedanta University Bill was yet to get the nod of Governor M C Bhadnadre.

Orissa's higher education minister Devi Prasad Mishra who piloted the Bill in the Assembly, said, "The state government has taken steps and passed the bill in accordance with UGC gudelines for setting up private universities."

"During passage of the bill, we have instead added some more clauses to regulate the varsity," Mishra said, adding the state government would take a stand on the HC judgement after verifying it.

"The state government has done its best, let the AAF take steps according to the law," he said.

Congress leader Umaballav Rath, who filed the first PIL in the HC challenging the varsity project, described the judgement as the "victory of Lord Jagannath."

The HC judgement had saved about 500 acres of temple land to be given to AAF for setting up the Vedanta University, he said.

Former law minister and BJP leader B B Harichandan said, "It is not only a setback to Vedanta, but also a blow to the state government that flouted all legal norms to promote the private university."