Raising the issue through a calling attention motion notice, Congress MLAs Umesh Patel, Motilal Dewangan and the party's state unit chief Bhupesh Baghel said the government acquired land for the project on a very large scale but issues pertaining to rehabilitation, payment of compensation and employment to the displaced people were not solved.
The project-affected farmers had staged a protest following which the administration sought two months to distribute compensation, but to date no compensation had been paid, they alleged.
They also alleged illegal felling of trees for the project.
In his reply, Revenue Minister Premprakash Pandey said it was the Railway Ministry's project for which 255.008 hectares of private land was acquired under the Indian Railway Act,1989.
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The government had fixed Rs 78.81 crore as compensation, of which Rs 66.21 crore had been distributed among 1,004 farmers so far, he said.
The Railways was collecting information of the affected people for distribution of compensation under a proposed rehabilitation scheme and sought time till June 2016 for depositing the money, the minister added.
Not satisfied, Congress MLAs walked out.