Israeli MPs on Wednesday voted down the preliminary reading of a draft bill that would have retroactively legalized settler homes built on private Palestinian land.
The 22-69 vote effectively thwarted an attempt to circumvent a Supreme Court ruling ordering the removal of five buildings from a settlement outpost known as the Ulpana neighborhood by July 1.
The planned demolition, which would affect 142 people, has sparked fury among settlers and their supporters in parliament.
Prime Minister Benjamin Netanyahu, who strongly opposed the bill on the grounds that it would create an international backlash, had reportedly threatened to sack any cabinet minister or deputy who backed the proposed legislation.
Two ministers who said they would back the bill -- Public Diplomacy Minister Yuli Edelstein of Netanyahu's Likud party, and Science Minister Daniel Hershkowitz, who heads the Jewish Home party -- were not present for the vote.
Netanyahu has said he backs the idea of physically relocating the five buildings, moving them stone by stone to a new location, in a plan which is being examined by Attorney General Yehuda Weinstein.
Israel differentiates between "legal" settlements and "illegal" outposts, but the international community views all settlement on occupied territory as a violation of international law.
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