Development-induced-displacement (DID) in remote locations has jeopardized the welfare of Tribal and Dalit communities (TDC), which has reached a magnitude and frequency that requires immediate attention and worldwide significance. Therefore, the current study seeks to explore the impact of forced displacement on tribal identity, culture and traditional sources of livelihood in the establishment of Utkal Alumina International Limited (UAIL) in Kashipur (Odisha). The study has addressed three objectives: (a) to what extent did politicizing the UAIL operation by the upper-caste community altered the compensatory R&R (rehabilitation and resettlement) benefits received by TDC, (b) to measure the impact of displacement and the extent of loss of livelihood caused by UAIL and (c) to what extent tribal identity, culture and livelihood security been eroded in the process of UAIL establishment. Amid the essentiality for balanced reconciliation between displacement and resettlement, the study found that the impact of DID is not homogenous on society but has affected the TDC differently due to corrupt intervention of upper-caste officials, resulting in delayed or denied compensation. The study recommends an immediate requirement of risk reversal explicit strategies backed up by adequate financing for reconstructing and improving the livelihood of displaced masses.