Tamil politicians and people accuse the Mahaweli Authority of partitioning the Wanni land for distribution among Sinhalese businessmen.
Four decades ago, the land had been used by Tamils for cultivation and other livelihood purposes.
Former north councilor Thurairasa Raviharan said he observed during a visit on 01 August that land in five villages in Mullaitivu is being cleared by using machinery for the purpose.
The district secretariat has confirmed that 11 Sinhalese have already been transferred 25-acres each from Akkaraveli.
Students of Jaffna University too, took up the matter during a protest on the previous day.
Raviharan said the Tamils had ownership licenses for the land before 1980.
They had fled the area in 1984 in the face of escalating hostilities, and had returned after the end of the war.
However, the Mahaweli Authority and the Wildlife Department have yet to permit them to resume cultivation work.