In India about 55 percent of the tribal population now reside outside their traditional habitats due to displacements caused by development projects. Displacement due to dams have been traumatic and dehumanizing. The displaced families livelihood, cultural identity and informal social networks get badly affected and disrupted. Planning process presumes that displacement is inevitable, the creation of internal refugees, and their impoverishment, reflect the incapacity of the state to rehabilitate them and avoid making them the sacrificial lambs of development process. Development without distributive justice produces and accelerates disparity which actually it aims to eradicate.