Sources said some transgenders including Kisan and Patra in small groups were collecting money from drivers of trucks plying on NH-143 in the wee hours of Sunday.
Speaking on the occasion, MLA Mustafa said that the State government has taken required measures for the welfare of transgenders.
The first bench of Chief Justice SV Gangapurwala and Justice PD Audikesavalu issued the direction to the government asking it to file the response by September 26.
Odisha government has taken significant steps in inclusive sanitation practices and urban local bodies across the state are partnering with the transgender community.
The city civic body had involved transgender communities in different responsibilities like parking, defaulters' tax collection and sanitation activities in the past.