Justice B P Ray declined to grant the stay after hearing the counsel of OOA and the state government.
The High Court had on November 29 asked the state government to take possession of encroached government land adjoining Barabati Stadium.
The property on the land includes a sprawling marriage mandap and over a dozen business establishments.
The High Court had also asked the state crime branch of the police to investigate the incident.
OOA, wishing to challenge the November 29 order in a higher court, had approached the High Court in a miscellaneous petition seeking a stay on immediate operation of its order.
The government also informed the High Court that the crime branch of police have already started investigation.
OOA, which had got 20 acres of government land on lease for construction of Barabati Stadium way back in 1949, subsequently encroached upon two acres adjacent vacant government land in mid-70s.
However, in 1986 the OOA sub-leased the encroached land and developed various business establishments on it and earned revenue.
Challenging the encroachment, the state government had in 2000 filed an eviction case. But OOA contested it in a civil court and in 2002 obtained a favourable decree. The state government then moved the High Court against the judgement of the lower court.
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