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's Supreme Court on Thursday ruled in favour of the removal of a group of homes built on privately owned Palestinian land in the occupied , according to a Reuters report.

The court overturned a 2018 District Court ruling that recognised the Mitzpe Kramim settlers as the land's legal owners, as Israeli authorities were unaware the land was privately owned by Palestinians when the area had been mapped out.

The 2018 ruling was based on an Israeli law that states that transactions with legal errors can be validated if conducted in "good faith", without prior knowledge of Palestinian ownership, or if the government had ordered homes to be built there.

The Supreme Court said that Israeli authorities had not acted in good faith by “turning a blind eye to the many warning signs given over many years” which pointed to the land's Palestinian ownership, Reuters reported.

The court gave Israeli authorities 36 months to find alternative housing for the residents of Mitzpe Kramim, which was established 20 years ago and houses around 40 families.

In June, Israel's Supreme Court the "good faith" law that retroactively authorised thousands of settlement homes built on land privately owned by Palestinians in the West Bank.

Chief Justice Esther Hayut wrote the law "unequally infringes on the property rights of Palestinian residents while giving preference to the proprietary interests of Israeli settlers".

More than 400,000 Israelis live in West Bank settlements, which are deemed illegal by most countries.

Israeli Prime Minister Benjamin Netanyahu has aimed to annex parts of the West Bank under 's Middle East Peace Plan, which also envisages the creation of a restricted Palestinian state.

Netanyahu's annexation plans have been delayed by Israel's recent with the United Arab Emirates.

Agencies contributed to this report.

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