The division bench of Chief Justice Bhaskar Bhattacharya and Justice J B Pardiwala also issued notices to the state government and Kutch district collector, seeking replies within two weeks.
Locals from Siracha village have filed the PIL through advocate Hetvi Sancheti, claiming that Adani Power encroached upon over 40 acres of village grazing land, affecting their livelihood.
The PIL sought that construction be stopped, and the structures standing there be demolished.
It further alleged Adani Power officials threatened villagers when they protested the encroachment and claimed though the construction was illegal, the government was going to regularise it. Local police is also hand in glove with the company officials, the PIL alleged.
"The police gave protection to company when villagers tried to stop illegal work at the site," it said.