Since independence, India has been undertaking development projects to improve the quality of life through ‘planned development’ in successive Five-Year plans but some of them have brought adverse effects through displacement from original habitation due to large-scale land acquisition. All projects which includes industrial, mining, irrigation and infrastructural projects, farmers are resisting for land diversion and acquisition because it lads to their miseries, deprivation, joblessness, rehabilitation problem and resettlement. The main issues involved in land diversion process are fixation of compensation for acquisition of land, displacement of families and their rehabilitation at a secured place and employment of farmers. Development-induced displacement has brought severe socio-economic and environmental problems. For several decades, development projects in India have expropriated and forcibly displaced scores of people, without giving them the protection that a formal policy and legislation of development-caused displacement and resettlement should give to all citizens. The only existing relevant law has been the Land Acquisition Act (LAA) from 1894, which prescribed only how land could be expropriated with payment of compensation, but contains nothing about people’s entitlement to bring resettled and rehabilitated. In this connection the paper delineates about the Dongria Kondh a primitive tribal communities in south-west Odisha in eastern India, are at threat from the expansion of an alumina refinery and new bauxite mining project. Effectively kept excluded from the decision-making process, their land is to be used for other’s profit. They have already suffered deprivation of their rights to water, health and environment, because of pollution and poor waste management by the refinery. The mining project will be located on the traditional lands of the Dongria Kondh, an Indigenous endangered community who now face the fear of losing their way of life, sacred hills, rights to water, food, livelihoods and cultural identity. This paper will discuss India’s needs not only for a strong policy on population displacement, resettlement and rehabilitation, but also for enacting firm legislation, compelling for government agencies and for private sector corporations and programmes.