Mangalore Special Economic Zone was established in February 2006, promoted by the Central and State Governments, financial institutions and private entrepreneurs. The MSEZ project has been proposed over a total area of 3,985 acres of land of Dakshina Kannada District, in Karnataka State. MSEZ Limited about 2207.23 acres of land was notified and acquired from the villages like Permude (780.18), Kalavaru (482.35), Thokooru (303.67), Bajpe (606.6), Kulayi (19.9), Sajjpa(1.03), Parambooru (3.47), Idya (.25), Narikombu (1.65), Kasab (4.29) and Sara (3.84). According to the field survey 63.9 percent of the responded they are not satisfaction with the MSEZ compensation because the compensation amount its less than the market value and they are not happy with the value of their houses. About 30.9 percent of the respondents they are not happy with the infrastructure facilities of rehabilitates areas because the infrastructure facilities are very poor condition and MSEZ failed to provide basic infrastructure for them. Still there is lack of infrastructure problems facing the rehabilitators such as drinking water, power, transportation , drainage, lack of quality road, no health facilities and education institution etc. The data reveals that 16.9 percent of the respondents got more than 50000 and within 1 lakh per annual. Out of the sample size 43.9 percent of the respondent’s annual income is above 1 lakh per year. Its clearly shows that Majority of the farmers standard of living not improver as much as possible due to so many litigation in the process of the MSEZ activities.