On 2 January 2006, the police in Kalinganagar, Orissa opened fire against a group of tribal people protesting against Tatas constructing a steel plant on their lands and not paying them adequate compensation. This tragedy killing 12 persons on the spot shocked the whole nation. But even in this tragic hour the political parties, which were not particularly concerned with the resettlement issues, lost no time in turning the incident to their advantage. This paper provides a vivid account of these events, traces the root causes of this unfortunate incident, and reflects on the development path that India is currently pursuing under globalization pressures. It concludes that unless the displaced people are brought closer to decision making processes, the goal of inclusive development will remain ever more elusive.