The apex court considered the report of Accountant General of Orissa and also directed a CBI enquiry into the issue of collection of rent from 23 shops and a marriage hall which were built by OOA.
A bench headed by Justice Dipak Misra directed the Collector of Cuttack to take over possession of 23 shops and 'Kalyan Mandap' situated in the commercial complex built by OOA and ordered the Department of Revenue to continue levying the rent and maintain shops and marriage hall.
It rapped Asirbad Behera, General Secretary of the Orissa Olympic Association, for his conduct and barred him from contesting in OOA polls.
The top court, however, refused to order demolition of the marriage hall and said the 'Kalyan Mandap' was functional for more than two decades and there was no justification to direct its demolition.
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The court also declared the agreement between OOA and Incon Associates, for management of Kalyan Mandap also known as Barabati Palace, as "null and void"
The judgement came on the plea filed by OOA against an Orissa High Court order directing the state government to take possession of encroached government land adjoining Barabati Stadium while asking the state crime branch of the police to investigate the incident.
However, in 1986 the OOA sub-leased the encroached land and developed various business establishments on it and earned revenue.
Challenging the encroachment, the state government had in 2000 filed an eviction case. But OOA contested it in a civil court and in 2002 obtained a favourable decree. The state government then moved the High Court against the judgement of the lower court.